With the impending banking ban by the Reserve Bank of India, cryptocurrency exchanges in the country are scrambling to find banking alternatives. Two Indian exchanges have announced that they are launching P2P crypto trading services which will allow traders to buy and sell crypto legally even after the central bank’s ban.
Wazirx’s P2P Service
With the banking ban by the central bank set to take effect on July 5, Indian crypto exchange Wazirx has been working on a solution for users to buy and sell crypto without needing a banking service.
The exchange announced last week that it is launching a P2P crypto transfer service which it claims to be “the most legal way to buy/sell cryptos in India after the RBI ban”. CEO Nischal Shetty described:
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.
Wazirx releases the crypto to the buyer upon receiving a confirmation from the seller, he noted. “We verify the KYC details of every user before allowing them to trade on Wazirx, and keep a record of each and every transaction that occurs on our exchange.”
Launched in March, Wazirx currently supports the trading of 37 cryptocurrencies against INR and 17 BTC trading pairs.
Speaking to news.Bitcoin.com, Shetty shared, “we have 35 coins listed in just 3 months of launch”. With over 100,000 users currently, he added that his exchange is the “fastest to list those many coins in India in such a short span of time.”
Planning for RBI’s Ban
The P2P trading service will launch once the RBI ban takes effect, Shetty explained. According to the central bank’s circular, the ban prohibiting banks from servicing crypto businesses will commence on July 5.
“We will launch it whenever banks completely stop providing their services to crypto exchanges…tentatively 6th July but we’ll need to wait and watch,” Shetty told news.Bitcoin.com, noting:
People have been worried about how they would convert their fiat (INR) to crypto and vice versa. As soon as we announced P2P there was a big sigh of relief as users in India realized there are alternatives to the ban.
Five known petitions have been filed with the courts against the RBI ban. The supreme court will hear all cases on July 20, except for one petition which was filed by the Internet & Mobile Association of India (IAMAI). This petition will be heard on July 3. “After considering the urgency, the supreme court decided to hear this one out on 3rd which is before the RBI deadline,” Shetty detailed. Wazirx is a member of this association as are some other major crypto exchanges such as Unocoin and Zebpay.
Koinex’s P2P Service
Another Indian crypto exchange, Koinex, also announced last week that it is launching Loop, “a peer-to-peer network for digital assets transactions using fiat currency”. The new service will be integrated into the Koinex web platform and the mobile app. Koinex users will automatically have access to it, co-founder Rahul Raj detailed, elaborating:
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.
What do you think of Indian exchanges launching P2P trading? Do you think RBI will find a way to stop this? Let us know in the comments section below.
Images courtesy of Shutterstock, Wazirx, Koinex, the Economic Times.