With the cryptocurrency banking ban by the Reserve Bank of India set to take effect from July 5, exchanges are scuffling around looking for ways to work around the censorship. After the biggest Indian exchange Zebpay played around the RBI statements and provoked a massive sellout on June 23 by creating a haste and panic environment, Indian users’ trust on exchanges was much shaken.
Getting past Zebpay’s market manipulation for personal gains, a few other Indian exchanges are working smart to figure out alternatives to help out the Indian crypto community. Exchanges WazirX and Koinex are planning to launch p2p trading services which would allow traders to buy and sell cryptocurrencies legally, without needing a banking service.
The Indian crypto community has breathed a sigh of relief as soon as the exchanges announced the p2p as an alternative to the embargo.
WazirX’s announcement last week said that it will be launching a peer-to-peer transfer service for cryptocurrency which, as WazirX claims, is “the most legal way to buy/sell cryptos in India after the RBI ban”. WazirX CEO Nischal Shetty says: “The buyer and seller can deal with each other directly while Wazirx acts as an escrow account for holding the cryptos during the transaction so that neither party cheats the other.”
Koinex also announced the launch of Loop, “a peer-to-peer network for digital assets transactions using fiat currency”. The service is to be integrated into the desktop and the mobile web platforms of Koinex. Co-Founder Rahul Raj was quoted saying, “In conjunction with the crypto/crypto trading corridors on Koinex, the peer-to-peer transaction network will allow all users to exchange their fiat currency into a digital asset and vice versa without compromising on the seamless experience that they are used to.”
Launched in March, WazirX currently supports the trading of 37 cryptocurrencies against INR and 17 BTC trading pairs, with over 100,000 users presently on the exchange
Shetty says WazirX verifies the KYC details of every user before allowing them to trade on the exchange and keeps a record of each and every transaction that occurs on the platform.
About 5 petitions were filed in the Supreme Court of India, dated to be heard on July 20, except for one filed by the Internet & Mobile Association of India (IAMAI), which will be heard on the 3rd of July, two days before the deadline declared by the RBI.
Users are concerned about the idea that the RBI may even find a way to stop the new alternative to the ban in the very near future.