India’s Giottus Exchange Opens INR to Bitcoin Trading Despite RBI Crypto Ban
Indian cryptocurrency investors have been getting nothing but bad news over the past few months. But while the past hasn't been kind to crypto on the subcontinent, there is some good news for investors, as they can now trade as they would have before the nationwide ban imposed by the Royal Indian Bank [RBI].
Giottus, an India-based exchange platform has re-opened INR withdrawals and deposits, while also keeping in firm step with the various rules and regulations specified by the RBI. Arjun Vijay, the acting COO of Giottus, spoke specifically about RBI and how Giottus is helping to make Cryptocurrency more open and in step with the country's strict regulations.
In the past, the Reserve Bank of India had ordered banks under its authority to cease any existing operations with businesses directly linked with or using cryptocurrency, leading to major exchange platforms to start offering peer to peer trading solutions as an alternative.
Out of these exchanges, Giottus was one of the first to begin offering these peer to peer solutions in the wake of the RBI ban. And currently, it offers services for Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH) along with Ripple / XRP. Vijay gave the reasons for the recent move by the company.
“We were one of the first exchanges to launch P2P in India. We decided that the market needed a P2P after RBI bank fencing decision, as this was what was happening in China and other places. Since then, Giottus launched a P2P exchange solution along with normal exchange in April.”
He went on to say:
“From our P2P experience, we were able to identify people who can process deposits and withdrawals faster and who can deliver service levels that can raise the bar of Giottus. “
Just how exactly Giottus has managed to re-open its system of deposits and withdrawals for thier customers is by identifying specific traders that can help process deposits and withdrawals relatively quickly. This is managed and done through peer to peer, enabling various traders to still function in a normal capacity.
Vijay, while discussing Giottus' position in the crypto market, also discusses the various details of the service in question, including features such as collateral and operating fees:
“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.”
In general, traders are able to process roughly 60-70% of their overall collateral, according to Vijay. He also went on to talk about how the partners cannot have a balance of more than 60% of their initial collateral.
If this were to happen, they would be asked to increase the collateral or add more partners in order to reduce the level of risk associated with them. The COO gave clarification for why this was the chosen strategy.
“The market was still yearning to get back to open order book, or spot exchange trading…we envisioned a model that can make this customer’s dream a reality.”
So far, the program has been a resounding success among its current population of traders within the Giottus platform, and comes with a program for scaling their individual contributions to the exchange. The COO went on to discuss this in more detail:
“The P2P part provides robustness and redundancy, so we’ll be adding more and more P2P partners. We have already got a lot of requests. The partners who provide better service, are given more weight and asked to process more payments.”
The partners are not left out of the aspect of profitability, and stand to make a good amount of money, as they collect roughly 0.2% on all the transactions that they are responsible for processing. This comes into play in a significant way when it comes to processing bigger quantities within specific transactions, this is because they stand to make far more from these.
An Indian cryptocurrency investor, Arjun Tilak, stated:
“The RBI has been dead set on their ban on cryptocurrencies, as the board responsible for passing it believed that cryptocurrency is only used for illegal activities. I think moves like these by exchanges show that it is not, and that there is a vibrant trading community behind the technology in general. One can only hope that the government will embrace it.”