How Unocoin is Going to Tackle Reserve Bank of India’s Crypto Ban
The banking ban by India’s central bank has become on July 5. One of India’s largest cryptocurrency exchanges, Unocoin, is a member of IAMAI, as are some other major crypto exchanges including Zebpay and Coinsecure.
Unocoin’s CEO and co-founder, Sathvik Vishwanath, explained that the sentiment among Indian traders “is quite weaker than before.” He elaborated that banks would not support crypto exchanges’ customers “to send and receive INR as it would still violate the RBI policy which not only restricts entities but also individuals.” To overcome this situation, Vishwanath is of the opinion that the Indian crypto market will prevail through this situation if provided with the appropriate alternative.
He added: “All customers are expecting the exchanges to figure out the alternatives. Long-term investors have not lost hopes…From the effective date [RBI’s ban], the businesses will have a tough time till the alternative methods have been figured out.”
The exchange also clarified, “This is not a small undertaking and it will take us some time to deploy new solutions.” Customers can still deposit and withdraw INR “through normal banking channels” until further notice. Vishwanath confirmed, “There are some third-party dependencies to be resolved before we can implement these [mechanisms].”
Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated with dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time.
Moving forward, Unocoin has notified its traders about the hiccup in their crypto service offerings. They are putting an effort to provide new methodologies for withdrawals and deposits. However, Vishwanath is hopeful about the future of the cryptocurrency market in India and has also stated that its traders can continue depositing and withdrawing as per their preference.