How Unocoin Remains Afloat During India’s Crypto Ban
The current crackdown on virtual currencies in India has forced Unocoin, a popular crypto exchange, to branch out and experiment with other compliant solutions such as ATMs and stablecoins as a way for customers to continue depositing traditional fiat funds into the platform.
Unocoin And ATMs In India
In April, the RBI enacted a ban on financial entities from dealing with cryptocurrency companies which affected the industry as customers were no longer able to use regular banking channels.
As a result, the exchange decided to installs an ATM in one of the regions popular consumer locations, the Bangalore mall, enabling users to send rupees directly into their crypto wallets and perform other transactions without the use of banking services. Unocoin is scheduled to install several more of these ATMs in cities such as Delhi and Mumbai.
According to CoinDesk, Sunny Ray, the Unocoin's co-founder, explained that since this crypto ban was put into action this April, the platform no longer had the ability to serve over one million clients with traditional banking services.
In addition, Unocoin users have been exchanging rupees to an Ether-based stablecoin known as TrueUSD which was enlisted on Unocoin's platform months ago. The token can then be utilized to buy other digital assets such as Bitcoin.
Union continues to research solutions for ATM scalability, however considering restrictions within the nation, Ray stated that the platform is looking to other supportive regions including Canada and Malta as a backup plan.
Moreover, the ban has significantly halted India's cryptocurrency industry in which major companies such as Zebpay were forced to shut down operations. It has also fostered the misunderstanding that bitcoin as a currency is illegal within the country despite the ban targeting only those entities covered by the RBI.
India’s Crypto Market
Although crypto restrictions have negatively affected industry businesses, many view it to be a temporary halt in the nation’s digital asset industry. Speaking to Coindesk, Crypto Kanoon’s co-founder, Kashif Raza, explained that as India remains interested in blockchain development, the local community hopes regulations will be established soon.
Moreover, the ban on ATM in India has created peer-to-peer trading. The international crypto exchange, Local Bitcoins, raised approximately $1.5 million in Indian industry expense per week a total of three times this summer, a major success.
Some might see an upside to the crypto ban for Unocoin as the exchange has gained upwards of 500 new accounts per day since the official closing of Zebpay.