In 2018, the Reserve Bank of India (RBI) directed all banks and financial institutions within its regulatory space to cut off service delivery and any other associations with businesses and individuals dealing in cryptocurrencies. With that directive in place, Indian investors will no longer use established financial institutions for their cryptocurrency transactions.
The act of cryptocurrency trading has always faced criticism in India. The finance minister, in an earlier speech, stated that cryptocurrencies wouldn’t be regarded as legal tender in India. The Indian Central Bank too has echoed similar sentiments and cautioned the public against using and investing on cryptocurrencies.
With the RBI announcement, India joins countries like Japan and China who are working on regulating and restricting buying and selling of cryptocurrencies.
What Does The New Regulation Mean For Crypto In India?
The policy signals an intent of regulatory agencies to crack down on cryptocurrency. However, the policy has left loopholes that investors have picked on.
Since RBI restricts financial institutions from facilitating cryptocurrency transactions, crypto enthusiasts are now opting for cash transaction and OTC markets. Investors and traders are also exploring peer-to-peer market models which will eliminate the need for a fiat currency system. Investing in overseas cryptocurrency markets is also another possible avenue.
The RBI mandate will make it harder for cryptocurrencies to gain a foothold on India’s mainstream business transactions. But, there still exist channels for traders and investors to buy and sell cryptocurrencies.
How To Buy And Sell Cryptocurrencies In India?
There are many global and local cryptocurrency exchanges where you can buy and sell your coins. However, international transactions involve delays and a certain level of uncertainty, even when used for regular money exchange. So, if you’re in India and looking to trade or invest in cryptocurrencies, here is a list of some of the Indian crypto exchange platforms that are already working or are soon to be released.
Coinshare is an exchange platform that has been around for awhile. It has mostly positive online reviews. With Coinshare, traders get a wallet and an exchange. It has a lot of guides on its site to help you learn more about Bitcoin trading. The platform only allows trading of Rs, 100 at a time, and takes 0.4% on trades. To add security to your account, you can set up a two-factor authentication process.
Coiname doesn’t buy or sell Bitcoin; it only allows instant e-KYC using Aadhaar, and thus it serves as a connector between buyers and sellers. It largely has positive reviews online and is recommended by many traders. Coiname is also backed by Billdesk which gives it some credibility. The exchange platform is reputed for fast transfers. It also offers instant withdrawals on weekends – this can come in handy when values drop instantly.
Koinex’s online reputation is mixed. Some users swear by it, and a fair number don’t think much of it. However, most traders say it’s easy to use, and it offers enough liquidity for daily trading. However, the fees are considerably high. To use Koinex, you need KYC and a PAN card. Koinex also provides yearly statements on request and allows OTPs for security.
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