India’s Digital Exchanges Continue with RBI Ban Alternatives
As of recently, India’s central bank saw its new law take place in India, affecting the entire cryptocurrency exchange industry. After releasing a written statement, new cryptocurrency transactions were banned within the country, forbidding any bank or monetary service provider from trading with digital coins. Companies and investing individuals urged India’s ruling court to delay the ban so that companies would have time to adapt to the restrictive change, although the decision was continued and the ban remains.
Many exchanges later announced that they would halt any transactions between crypto and fiat currencies as the ban took place. Wazirx made an announcement one day after the denied extension on delaying the ban, stating that any transactions related to cryptocurrency services and flat currency deposits have come to an end as banks and their accounts have been forbidden from any further digital interaction.
Koinex and Buyucoin made their announcements shortly after Wazirx, essentially relaying the same message and officially closing down their banking services until a solution or change to the new law appears. While some exchanges remain silent, among the initial suspenders of RBI transactions and services were Zebpay and Coinome.
As the ban continues, many exchange companies within India are looking for alternative solutions to the recent restriction, and opting for new methods of cryptocurrency trade. Exchange platforms are also picking up an interest in peer-to-peer trade in which an exchange will be the contractual holder of a transaction between two clients to oversee each trading process.
Wazirx also announced their P2P-based exchange service alongside Koinex, stating that users will not be able to perform fiat-crypto conversions anymore and will be able to instead use the P2P service provided by the exchange and conduct transactions through the new system, Koinex Loop. All customer data will automatically be transferred to the system so that veteran users will have instant access to the exchange and its services.
While many are resorting to P2P trading solutions to continue their business, others have focused on transactions between cryptocurrencies. Unocoin launched a new platform designed to facilitate crypto-crypto trading and introduced new coins compatible with each other to further encourage digital token trade among each other.