The Indian Crypto traders have come up with a new way of trading the virtual currencies, especially Bitcoin to bypass the Crypto banking ban introduced by the Reserve Bank of India (RBI). All the financial institutions under the RBI, the country’s central bank are not allowed to provide banking services to businesses dealing with Cryptocurrencies. However, this new trading method is allowing the traders to buy and sell Cryptocurrencies and make profits using their local currency.
New Way Of Trading Cryptocurrencies In India
Since the Reserve Bank of India (RBI) imposed Crypto banking ban last month, Crypto traders in the country have faced untold sufferings. In an attempt to revive the previously thriving business, the traders have devised cunning ways to trade the virtual currencies. Business Today has reported that one of the most preferred new methods of trading the currencies is called Dabba.
The news outlet reported that since the RBI ban came into effect last month, Dabba has witnessed a significant growth in trading volume. Brokers using this system do not transact on a platform linked to commodity or stock exchange. Instead, the system allows the traders to send money via the hawala network, and proceed with trading using foreign-based bank trading account. According to the news outlet, most of these banks are based in the UK and Dubai.
The business magazine also noted that traditionally, Dabba is known for trading in stocks. However, given that Dabba traders also accept bets on Bitcoin too, the system has grown significantly. The traders help in connecting India-based investors with foreign trading firms. Trading Bitcoin on the platform has increased manifold boosting the overall earnings of the firm.
Telegram And Hawala Are Crucial In Facilitating This Trade
It has been revealed that Telegram messaging app and the hawala channels are the facilitators of the new Crypto trading method. Telegram is a cloud-based messaging services while hawala is used to route the money according to the news outlet. A combination of these two systems is helping the Indians to reach the Crypto market.
The Crypto traders who use this method have to approach brokers with bank accounts in both India and abroad. The brokers have to establish official or unofficial ways of sending the money to the foreign bank accounts which support Crypto trading. The traders are then paid in cash or check after the deduction of a commission after trading.
More Crypto Exchanges In India Introduce Peer-To-Peer (P2P) Trading
The business magazine has also reported that the use of fiat currency for Crypto trading in the country has increased since the RBI ban became effective. The news outlet said that the cash market already existed before the interference by the country’s central bank. The market is providing traders with an opportunity to earn more money.
Furthermore, more Crypto exchanges in the country have introduced peer-to-peer (P2P) trading solution to remain operational and circumvent the RBI ban. Certain exchanges such as Coindelta, Wazirx, and Koinex have already introduced P2P trading services. Zecoex, Instashift, and Giottus have launched some forms of P2P services. A few days ago, Huobi, a Chinese exchange said that it is planning to launch P2P trading in the country.