Indian Exchange Resumes Fiat Deposits and Withdrawals Using New Method

Indian Exchange Resumes Fiat Deposits and Withdrawals Using New Method

An Indian cryptocurrency exchange has come up with a new method to allow its users to deposit and withdraw rupees despite the crypto banking ban by the country’s central bank. The exchange also guarantees that rupee requests will be processed within 30 minutes or the user will receive ten free XRP credited to their account.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Creative Ways Around RBI Ban

Indian Exchange Resumes Fiat Deposits and Withdrawals Using New MethodThe Reserve Bank of India (RBI), the country’s central bank, issued a circular in April banning all financial institutions under its control from providing services to crypto exchanges. The ban went into effect in July and banks began closing accounts of crypto exchanges, prompting a number of them to come up with creative solutions for INR deposits and withdrawals. Some launched exchange-escrowed peer-to-peer (P2P) services; some crypto-to-crypto trading.

One crypto exchange in particular claims to have found a way around the ban. Giottus, which also offers exchange-escrowed P2P trading service, reopened its fiat support despite the RBI ban. The platform offers BTC, ETH, BCH, XRP, and LTC trading pairs.

Giottus wrote on its website:

Get your INR processed within 30 mins of placing your request, else get 10 XRP credited to your Giottus account.

The exchange explained that INR withdrawals are only processed during banking hours, adding that “withdrawal requests received after 5 p.m. will take a maximum of 10 hrs or will be credited [the] next day (whichever is earliest).”

Giottus’ Method

Indian Exchange Resumes Fiat Deposits and Withdrawals Using New MethodGiottus co-founder and COO, Arjun Vijay, recently explained to Ambcrypto publication that his exchange is able to offer INR deposit and withdrawal services “by identifying specific traders who can process deposits and withdrawals quickly. This is still done through P2P, allowing the traders to still function normally,” the news outlet conveyed and quoted Vijay saying:

We have now started processing INR deposits and withdrawals through these selected P2P partners and they currently on average process requests within 15 minutes. As a safety measure, we take collateral from these P2P partners, and these partners, as service fee charge 0.2% for the deposits and 0.2% for the withdrawals.

Vijay further noted that traders can process volumes of up to approximately 60-70 percent of their collateral deposited with the exchange before additional collateral is required.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

What do you think of Giottus’ method to let customers deposit and withdraw rupees amid RBI’s ban? Let us know in the comments section below.


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Huge Demand for ‘P2P’ Crypto Trading Seen in India After RBI Ban

Huge Demand for 'P2P' Crypto Trading Seen in India After RBI Ban

Exchange-escrowed trading directly between cryptocurrency buyers and sellers is growing in popularity in India following the crypto banking ban imposed by the country’s central bank. One local exchange, in particular, is seeing “tremendous” response from Indian traders for this service as “tens of thousands of new users have signed up” in a month.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Indians Warming Up to New Solution

Huge Demand for 'P2P' Crypto Trading Seen in India After RBI BanSince the country’s central bank, the Reserve Bank of India (RBI), banned banks from providing fiat service to crypto companies, local cryptocurrency exchanges have come up with solutions for their users to be able to withdraw Indian rupees. One popular solution is exchange-escrowed trading which local exchanges call peer-to-peer (P2P) trading.

Indian crypto exchange Wazirx launched this service about a month ago. CEO Nischal Shetty told news.Bitcoin.com that the response from traders for this service has been “tremendous,” stating:

People love P2P…Everyone had their doubts whether P2P would work or not, the convenience etc…[But now] We’re seeing above 1 trade match every minute happening in P2P…we’re talking about peer-to-peer transactions at a rate of more than 1 per minute.

He further revealed, “tens of thousands of new users have signed up on Wazirx after we introduced P2P. In fact we got more signups in the last 2 weeks than we got in the last 2 months.”

Platforms With Similar Services

Huge Demand for 'P2P' Crypto Trading Seen in India After RBI BanThe Wazirx P2P system was built “to replicate how a traditional order book in an exchange behaves,” the CEO described. It uses tether (USDT) in transactions. Sellers convert their cryptocurrencies to USDT and sell them for rupees. Buyers convert their rupees into USDT which can be used to trade any cryptocurrencies on the exchange. “Wazirx acts as an escrow account for holding the cryptos during the transaction,” the exchange detailed.

“The P2P system has replaced the previous system of depositing fiat into Wazirx account and in return getting INR balance in your account,” Shetty explained to news.Bitcoin.com. “What happens now is that you deposit the fiat into another user’s account and get USDT in return…After you get USDT, you can trade in our USDT market in the regular way (non P2P).”

Furthermore, orders are automatically matched by the exchange. “The auto matching open order book in P2P has never been attempted before and people love the ease,” he noted, elaborating:

In most cases, P2P is even faster than the traditional method of deposits and withdrawals people here were used to because in P2P if the person is active online then they would immediately do the money transfer to the peer’s bank account.

Huge Demand for 'P2P' Crypto Trading Seen in India After RBI BanA few other exchanges also offer similar solutions. Coindelta, for example, launched its P2P exchange called Flux on July 26. Users can transfer their BTC, ETH, XRP and USDT between the main Coindelta exchange and Flux. Other cryptos must be converted to USDT on the Coindelta exchange first before sending to Flux.

A popular exchange-escrowed service in the country that uses a classified-style order book listing is Loop by Koinex crypto exchange. Currently, only BTC, ETH, and XRP are listed on the platform for trade.

Zecoex and Giottus crypto exchanges also offer services where users can make offers to sell from their crypto balances and then wait for buyers to select them from a list of available offers. Another exchange for Indians, Instashift, offers a platform for users to buy and sell cryptocurrencies between each other for five fiat currencies, including the Indian rupee.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

What do you think of how Indians are bypassing RBI’s ban? Let us know in the comments section below.


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Indians Use Creative Means to Trade Bitcoin Amid RBI Ban

Indians Use Creative Means to Trade Bitcoin Amid RBI Ban

Indian crypto traders have found some creative ways to trade cryptocurrencies, especially bitcoin, to circumvent the crypto banking ban imposed by the country’s central bank. The Reserve Bank of India has banned financial institutions from providing services to companies dealing in cryptocurrency.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Money Finds a Way

Indians Use Creative Means to Trade Bitcoin Amid RBI BanFollowing the crypto banking ban by the Reserve Bank of India (RBI) which went into effect last month, Indian traders are finding multiple ways to bypass the ban.

One of the methods they are using is referred to as Dabba trading, Business Today recently reported:

Ever since the banks were stopped from providing financial services to digital exchanges, the trade of bitcoin through Dabba trading has increased manifold.

Indians Use Creative Means to Trade Bitcoin Amid RBI BanIn Dabba trading, brokers do not execute trades on a “system connected with commodity or stock exchange,” the news outlet described. Instead, they transfer “money through hawala network” and trade “using an overseas bank trading account,” most of which are based in Europe, especially the UK and Dubai.

While “mostly used for trading in stocks,” the publication explained that this method “has seen an upsurge as traditional Dabba operators are accepting bets on bitcoin too, giving a boost to their overall earning,” adding:

Such traders are based out of Ahmedabad, Surat, Rajkot, Kolkata and Mumbai. They work as a bridge between a customer and foreign trading company. The broker accepts money in cash, buys bitcoins using an overseas trading account and sells them when the bet placed in India is settled. The difference is paid in cash to the customer.

Where are the Deals Happening?

Indians Use Creative Means to Trade Bitcoin Amid RBI BanMost Dabba deals are done “via messaging app Telegram, cloud-based instant messaging service with end-to-end encryption and the money in cash is routed through the hawala channels,” the publication detailed.

Citing that “such deals are also happening through official channels like brokers who maintain bank accounts in India as well as overseas,” the news outlet elaborated:

The money is then routed through official or unofficial channels to the foreign account where bitcoins are bought and sold. The money is usually paid in cash or cheque to the investor following the deduction of commission or any loss.

Cash and P2P Markets

The use of physical cash for crypto trading has also surged since the RBI ban took effect, the news outlet noted. “The cash market existed way before the RBI diktat on cryptocurrencies but it has now flourished as people with illicit cash are using it to earn more money.”

In addition, a number of crypto exchanges in India have launched peer-to-peer (P2P) trading solutions to circumvent the ban. News.Bitcoin.com recently reported on a few crypto exchanges launching P2P trading services – Koinex, Wazirx, and Coindelta. A few others such as Giottus, Instashift, and Zecoex also offer some forms of P2P systems. Furthermore, Chinese exchange Huobi has reportedly said that it will launch P2P trading in India.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

What do you think of Indians using these methods to bypass RBI’s ban? Let us know in the comments section below.


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Need to calculate your bitcoin holdings? Check our tools section.

The post Indians Use Creative Means to Trade Bitcoin Amid RBI Ban appeared first on Bitcoin News.

Indian Central Bank Responds About Crypto Restrictions

Indian Central Bank Responds About Crypto Restrictions

India’s central bank has responded to a representation about its crypto banking ban. The Supreme Court gave the central bank seven days to reply following a hearing last week of the petition by the Internet & Mobile Association of India against the ban.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

RBI’s Response

Indian Central Bank Responds About Crypto RestrictionsIndia’s central bank, the Reserve Bank of India (RBI), has responded to a representation submitted by the Internet & Mobile Association of India (IAMAI), as directed by the country’s Supreme Court.

Nischal Shetty, the CEO of crypto exchange Wazirx, told news.Bitcoin.com that the representation is “a detailed document explaining blockchain, cryptos and how they function,” noting that it was “made with the belief that if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations.”

Indian Central Bank Responds About Crypto RestrictionsThis representation was sent to the central bank on July 3 during the IAMAI petition hearing. The Court ordered the central bank to reply within seven days. On July 11, RBI finally sent its response to the association.

According to Sohail Merchant, the CEO of Indian crypto exchange Pocketbits, RBI’s reply is a “2 page generic response.” While stating that “as of now the response cannot be made public” but there is “not much to read though,” he commented:

IAMAI received the response from RBI as directed by SC [Supreme Court], the response is generic with the same language as the public circulars. They have not even given deliberate thought to the points made by us, all the basis of their arguments is ‘Investor Protection.’

Shetty reiterated, “RBI has responded to IAMAI…They aren’t changing their stand.”

Until Next Hearing on July 20

The central bank issued a circular on April 6 banning all financial institutions under its control from providing services to companies dealing in cryptocurrencies, including crypto exchanges.

Indian Central Bank Responds About Crypto RestrictionsRBI gave banks three months to sever their relationships with crypto businesses. As the ban went into effect on July 5, banks began closing accounts of crypto exchanges. One by one, the exchanges stopped supporting fiat deposits and withdrawals.

To bypass banking restrictions, a number of exchanges are launching peer-to-peer (P2P) trading services. Koinex and Coindelta are reportedly launching their P2P services on July 15. Wazirx, on the other hand, already launched its P2P service. The company wrote, “Wazirx P2P goes live today, 10th July at 3PM. With Wazirx P2P, a buyer and seller can buy and sell cryptos for INR directly with each other.”

Meanwhile, industry participants and stakeholders are trying to get the RBI ban lifted by filing petitions with the Supreme Court, which will all be heard on July 20.

Do you think RBI will soon lift the banking ban on crypto? Let us know in the comments section below.


Images courtesy of Shutterstock, IAMAI, and the RBI.


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The post Indian Central Bank Responds About Crypto Restrictions appeared first on Bitcoin News.