Indian cryptocurrency exchanges are forging ahead with their solutions to the crypto banking ban imposed by the country’s central bank. A growing number of exchanges have stopped fiat support as they ramp up peer-to-peer and crypto-to-crypto trading.
RBI Ban in Effect
The crypto banking ban by the Reserve Bank of India (RBI) went into effect at the end of last week. The central bank issued a circular three months ago, banning all financial institutions under its control from providing services to companies dealing in cryptocurrencies. The industry was hopeful that the Supreme Court would grant a stay on the ban on July 3 but the court did not and the RBI ban subsequently went into effect.
Wazirx announced on July 4, “We’ve discontinued INR deposits with immediate effect,” adding:
Our banking partner has abruptly stopped supporting our bank account. This is due to the recent RBI circular banning banks from providing support to cryptocurrency exchanges.
Koinex announced on July 7 that users can “submit INR withdrawal requests till 02.00 PM on July 9, 2018 (Monday) after which no further INR withdrawal requests will be accepted.”
Buyucoin announced last week that “Deposit and Withdrawal will be halted until further notice due to RBI circular by midnight 5th of July’18.”
Three of the first crypto exchanges to announce a suspension of fiat deposits and withdrawals were Zebpay, Pexo, and Coinome, as news.Bitcoin.com previously reported. Another major exchange, Unocoin, has yet to announce that it has stopped fiat support at press time.
Amid RBI’s ban, Indian crypto exchanges have been ramping up their solutions to continue business after the ban. Among them is P2P trading, where the exchange acts as an escrow service between two customers for each fiat to crypto trade.
Wazirx has been preparing to launch a P2P trading service. The exchange announced on July 8, “WazirX P2P is launching in a few days.”
Koinex is also gearing up to launch its P2P service called Loop. Citing that “the INR/crypto trading corridor may be discontinued over the next few days with prior notice,” the exchange revealed on July 7, “after that, users will be able to trade via Koinex Loop and True USD corridors for fiat stability.” The exchange elaborated:
Loop is a peer-to-peer transaction network for digital assets using fiat currency. Koinex users will automatically find their KYC-verified Loop accounts ready upon release. Loop is in the final stages of development and will be released before July 15, 2018.
Meanwhile, a number of exchanges have ramped up crypto-to-crypto trading services, similar to Binance and Poloniex.
Unocoin recently launched its crypto-to-crypto platform, Unodax. On July 4, the exchange announced more trading pairs for the platform. It now offers 9 BTC trading pairs, 4 ETH trading pairs, and 4 XRP trading pairs. Unocoin emphasized:
Unodax, India’s leading blockchain and cryptoasset company is introducing 17 crypto-to-crypto trading pairs.
What do you think of RBI’s ban and crypto exchanges’ solutions? Let us know in the comments section below.
Images courtesy of Shutterstock and Unocoin.