There has been a significant increase in peer-to-peer trading in India since the country’s central bank barred banks from opening bank accounts for Crypto traders. Several peer-to-peer (P2P) platforms have emerged to facilitate Cryptocurrency trading in the world’s largest democracy. Crypto exchanges have developed various escrowed P2P solutions to meet the demand for Cryptocurrencies in the country.
Cryptocurrency Trading On Localbitcoin
When the Reserve Bank of India (RBI), issued a circular banning the banks from providing banking services to the Crypto traders in April, there was an increase in Indian rupee (INR) and BTC trading in the first week. Such an increase was also observed in the week of August 18 when the trading volume hit 85 million rupees (~$1,218,201) from 68 million rupees (~US$974,561). At the same time, the 184 BTCs were traded compared to 150 BTCs the previous week.
When RBI introduced the ban, local Cryptocurrency traders filed a petition in the country’s Supreme Court. The court is expected to give a ruling next month and the local traders have been forced to look for alternative ways to remain operational. The traders have come up with other creative ways to facilitate Crypto trading such as Dabba trading platform.
Loop Trading By Koinex
Koinex is one of the Cryptocurrency trading platforms that were adversely affected by the RBI ban. Since then, the company has come with an exchange-escrowed P2P service referred to as Loop trading of XRP, ETH, and BTC. The new trading platform is giving the traders more capabilities such as creating their listings or exploring the current ones to select their preferred trades.
Rahul Raj, the CEO of the Mumbai based company told Inc42 that although the new platform emerged a few days ago, it has been well received by traders. He said that transactions are increasing on a daily basis. He added that they are only expecting the number to keep increasing going into the future.
Loop is also has a user rating mechanism, and allows cleansing of stale listings. The users of the new platform also have the cancellation option to allow listing modifications. The CEO has also revealed that the system supports dynamic pricing. The company has introduced these features to support genuine and legitimate trading.
Other Crypto Exchanges Have Come Up With New Platforms
Coindelta Crypto exchange has also come up with an exchange-escrowed P2P system to circumvent the country’s central bank ban. The new system called Flux allows the users to transfer USDT, XRP, ETH, and BTC between it and Coindelta. Although the system supports other Cryptocurrencies, they must first be converted to USDT before any transfer.
Another Crypto firm, Wazirx has come up with a P2P system that supports USDT. The users on this platform can convert their tether to rupees or vice versa when they want to sell or buy rupees. Wazirx helps in holding the Cryptocurrencies during the transaction. Bitbns, another Crypto company in the country has also come up with a P2P platform.
Although various Crypto firms have come up with various legitimate ways of supporting Cryptocurrencies trading in the country, the fact that the market is banned has put more users on the risks. Some people are pretending to be admin of these companies and stealing from unsuspecting Crypto traders. When trading, it is therefore advisable to do a background check and ensure you are dealing with the right agents.