India gears up for banks ban on cryptocurrency

On 5th April 2018, Reserve Bank of India (RBI) had banned banks from providing services to cryptocurrency related companies. Exchanges and funds were given a total of 90 days period to clear any outstanding balance. The deadline ends on 6th July.

Following the new regulations, exchanges in India took RBI to India’s Supreme court where they appealed to the government to “regulate” the exchanges but not ban. The Supreme court has kept the hearing for the date 20th July. Two weeks after the ban comes into effect.

Due to uncertainty regarding whether transactions will work after July 6th, Indian community leaders and exchanges have started taking various steps to ensure traders are well informed and transactions work as usual.

Here are a few steps that are taken by India’s leading exchanges to ensure smooth flow of business.

1. ZebPay: India’s largest exchange Zebpay has started announcing the users that their Rupee withdrawal may stop. Zebpay has also started ensuring that if for some reasons people are not able to withdraw their money, Zebpay will hold the money for them and will allow for fiat withdrawal as soon as they become feasible.
2. Koinex: India’s second most popular exchange, Koinex has introduced a new platform called “Koinex Loop”. Koinex Loop is a decentralized peer – to – peer trading platform. People trade using the inbuilt crypto-crypto trading platform and buy/sell using Koinex’s escrow service.
3. WazirX: Relatively new exchange, WazirX has already made huge progress in India’s crypto community. WazirX launched a P2P cryptocurrency buying/selling platform on their exchange yesterday. Similar to Koinex Loop, WazirX is acting like an escrow service to ensure that funds are transferred properly.

Apart from exchanges a number of community leaders in India, have taken the responsibility of helping and guiding the users through the ban phase. Aditya Ahluwalia, founder of India’s biggest Cryptocurrency group on Facebook – Cryptocurrency Trading Geeks, is constantly posting tips & tricks on how to trade cryptocurrency after the ban.

Indian cryptocurrency community believes that the ban is only temporary until government and banks figure out cryptocurrencies.

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