In this blog, we shall learn about the ongoing Case of RBI Ban on Cryptocurrencies in India. And what options we have now.
Main Parties Involved:
RBI (Reserve Bank of India)
SEBI (Securities and Exchange Board of India)
April 6th, 2018: Reserve Bank of India (RBI), gave notice to all banks not to allow any entity dealing with Cryptocurrencies to have any Banking relation in any Banks. It mainly effected the Exchanges which was working by having Bank Accounts in various Banks in India. RBI gave a notice of 3 months.
July 6th, 2018: Meanwhile, many Exchanges and other Institutions filed multiple cases in Supreme Court of India, the Apex Court against RBI which they say is against the Indian Constitution. They wanted a date before the Ban was levied. However, they got the date of July 20, 2018. And as such the Ban got implemented on the Indian Exchanges, to end their Banking Relations.
July 20, 2018: India’s Supreme Court heard the petitions against the crypto banking ban by the Reserve Bank of India (RBI). The court also did not hear all arguments by both sides. There are at least five writ petitions filed against the RBI ban. SEBI [the Securities and Exchange Board of India] and few others have not filed their response to the petition seeking regulation. The Supreme Court asked SEBI and all parties involved to file their reply within 4 weeks seeking regulation. Final hearing is slated for 11th September 2018. Now, that is the Judgement day.
There are multiple reports that the Indian Government is seriously considering to have the Cryptocurrencies in the Commodities Market. And that is the reason for the involvement of SEBI - The Securities and Exchange Board of India. Indian Crypto Traders and Investors are hopeful that it will be regulated, but as of now the exchange are under RBI Ban.
September 11, 2018: Next Hearing Date.
So what now ... in the meanwhile? Are there no option for the people of India to buy and sell Cryptocurrencies. The good news is.... There is!
And it is called P2P - Peer to Peer Service Line.
What is P2P Crypto Trading?
P2P is Peer to Peer Crypto Trading. Here, the Exchange does not hold any INR (Or Fiat) account with any Bank. The Fiat Currency gets transferred from Buyer to Seller of Crypto. And that is why, it is called Peer to Peer Transfer. It is not a new way of Trading. It has been there for years, which are still available as options within India, and may be some other restricted countries as well.
What are the Best P2P Platforms in India?
There are not too many such Platforms in India currently.
P2P Leaders in India are:
InstaShift: This is one of the best P2P Trading Platform in India. It has a very unique Registration/Login Process. Your mobile no. is your ID and OTP sent to your mobile each time would be the password. No email ID, no verification documents, etc. There is stop loss feature here and Bitcoins gets sold/bought relatively easier here. It is available in INR, NGN and CHD Fiat Currencies and multiple cryptocurrencies. It is available in multiple countries. It maintains a Mixed Order Book wherein a User who wishes to buy, say BTC & there is a Seller with XRP, they would process the trade between them as well. Trades happen quicker than others. Support is very dedicated and helpful.
LocalBitcoins: This is the most common P2P Trading Platform. It is only for Trading Bitcoin (BTC) for your Fiat Currencies. It is available in almost all countries throughout the world.
Koinex Loop: It is launched on 17th July, only after the RBI Ban. It uses its existing Wallets of Koinex for Trading at the Loop, where the withdrawal fees is relatively high. The P2P trades doesn't happen quickly. Even after closing two existing order, it is still pending from the other Peer(User) for over 24 hours. People have just created many orders which they do not close/process.
WazirX P2P: This Interface looks good, but the main problem here is that it trades only in USDT and INR. There are no Bitcoin or anything for now. It is also a new P2P Exchange launched on 10th July.
Other Exchanges are also working towards creating their own P2P Exchange.
So, now Indians can purchase Twinkles by sending Bitcoin from any of the above Exchanges. And maybe wherever there are challenges, they can also try P2P in their own countries.
Please Note: These Exchanges are not RCF recommendations. Trade cautiously.