Examining RBI Crypto Ban’s Effect On Bitcoin Trading Community In India
Major Indian Crypto Exchange Discusses Aftermath of the RBI Ban
As you may know, it has been about two months since the cryptocurrency ban of the Reserve Bank of India (RBI) went into effect and basically stopped banks from working with crypto exchanges. Now, the CEO of the Indian exchange Unocoin has talked to the media about the aftermath of the ban and about the future of Bitcoin in India.
Everybody Is Looking At the Supreme Court
The issue started when the RBI issued a circular back on April 6 that banned all financial institutions like banks from providing services to businesses which dealt with cryptocurrencies. The RBI gave three months for the firms to comply and, after that, they would have to break up with the exchanges.
While a number of exchanges have filed petitions against the measure, they will only be heard by the Indian Supreme Court on September 11.
The CEO of Unicoin, Sathvik Vishwanath, has affirmed that the trade volume has significantly gone down as the ban is restricting new users from joining in the market and it is also hurting the sentiment of the present users. According to him, everybody is anxious for the developments on the Supreme Court.
While the Indian exchange is stagnating, the Bangalore-based exchange of the CEO is still growing at a decent, albeit slower rate.
As the Indian government has been drafting crypto regulation to solve these issues, the process is slow. According to Subhash Chandra Garg, the Secretary in the Department of Economic Affairs of the country, the bill was supposed to be ready in July but it was pushed until the end of the year. The central bank has also set up a new unit to take care of blockchain cases, too.
xIn the world, according to Vishwanath, regulation has been a big issue. However, he expects that India is able to solve the problem soon and to let the traders use cryptos again.
The P2P Solution
Some local crypto exchanges have been using a P2P solution for INR withdrawals since the ban. The most used method in the country is to bypass the central bank’s ban with P2P services provided by escrows, which has made P2P trading popular.
The RBI is also looking into the issue and it has been anticipating more P2P trades. It believes that these trades have to be monitored and that exchanges may use cash in this new model.
According to Vishwanath, the exchange is not intending to use any P2P solution at the moment but it is evaluating the possibility. He believes that most of the population is not yet ready for crypto to crypto trading. Most people just buy Bitcoin and that’s all.
While this is happening, Zebpay, another popular exchange, has affirmed this week that it will give all the INR of the users back to their accounts citing the RBI ban. According to the exchange, the banking problems created by the ban left no choice for the company and the management intends to give the money back as soon as possible.