KoinEx Loop Launches In India As LocalBitcoins Competitor Despite Crypto Ban
India is one of the many countries in the world that has placed a stringent ban on cryptocurrency trading, though the market may soon take a turn. Regulations with the Indian Reserve Bank have not changed at all, but that has not stopped KoinEx from bringing forth competition for the LocalBitcoins platform. This innovative project will let locals continue to participate in Bitcoin and altcoins.
Since there are many cryptocurrencies that are failing in India right now, it is interesting to see what kind of impact KoinEx Loop is going to have. Cryptocurrency platforms are not actually out of business, though that’s definitely what enthusiasts assumed. Instead, it is a change in the business model that is necessary.
— Koinex (@koinexindia) July 17, 2018
Right now, any exchange that has survived regulatory measures can only participate with crypto-to-crypto trading, which does not require any local authorization at this time. However, any fiat-to-crypto or crypto-to-fiat transactions are prohibited.
KoinEx is pushing past the current model for cryptocurrency in India to try and make the industry still accessible for users in this country. By competing with LocalBitcoins, the platform is actually able to trade with INR, but without the middleman that is restricted by the ban. The company is in full swing already, and it is performing in a way that is safe to say that no one really expected.
At the moment, KoinEx is supporting Bitcoin, Ethereum, and XRP. XRP, Ripple’s token, may attract some unwanted negative attention, considering that there are many people that do not like it right now. It is the most centralized cryptocurrency of any token on the market, and some people even say it should not be considered a valid crypto token at all. However, one of the bigger concerns is that the SEC may soon be classifying Ripple’s XRP a security.
There is still plenty of time to see if KoinEx Loop will manage to boost trading volume, though the reason for reduced activity is definitely justified. The Reserve Bank of India will not allow companies to pair with traditional banking services, which makes it hard to put in or take out currency. There is no restriction like this in place for consumers, which means that peer-to-peer trading is still an option.
Making the process of crypto trading easier can only bring about good things for consumers. The lack of friction with KoinEx Loop brings up new changes in the crypto ecosystem, though it is uncertain if the local traders will have the demand necessary to keep it afloat. However, by bringing in new options to the industry as a whole, it is clear that cryptocurrency is not just a fad that will fade way in the near future.