Crypto exchanges explore new ways to execute trade

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Crypto exchanges are aggressively looking for alternative ways to allow investors to buy and sell crypto assets after banks blocked trading and investments in cryptocurrencies under dictation from the Reserve Bank of India (RBI).

In the past few weeks, exchanges have created specialized wallets, used them on board payment processing companies, banks outside India, and even set up “offline” payment systems to give investors access to crypto assets.

This comes at a time when several investors were liquidating their positions but were unable to receive any payouts in the past two weeks.

“India’s cryptocurrency exchanges have recently seen limited banking services and investors across the board are struggling,” said Shivam Thakral, CEO of BuyUcoin cryptocurrency exchange. “We at BuyUcoin are looking for alternative ways to process withdrawals for our investors as trust and ethics are an integral part of our work culture.”

Exchanges say most banks have ceased services and investors cannot buy or sell cryptocurrencies through banking channels or platforms.

Cryptocurrency exchanges also coordinate with each other to ensure they are paying in hopes of maintaining their trust. “We have set up online and offline transaction modes,” said Ashish Mehta, co-founder of DigitX, an exchange. “We have set up banking on ramps with well-known service providers in this area. We are also building a strictly verified and validated P2P (Peer-to-Peer) channel where the trustworthy reduction of counterparty risk will be our top priority. “Many exchanges also tie themselves to payment processing companies – similar to Paytm or PayPal – which in turn Trade with the banks. Many investors fear that the money will not be reflected in their bank accounts even after they have sold the cryptocurrencies. The exchanges claim that they have only managed to win the trust of Indian investors in the last two years flocking to buy a piece of cryptocurrency.

Industry experts say the RBI released the dictation despite the Supreme Court overturning the central bank’s circular banning cryptocurrency in the country.