Some Indian exchanges have restarted fiat deposits and withdrawals
Some Indian exchanges, despite the RBI ban of 2018, have restarted accepting fiat deposits and withdrawal. This has been introduced through an innovative model which bypasses banks and makes use of trusted individuals who have access to high liquidity.
On April 2018, the Reserve bank of India banned banks in India from providing their services to companies dealing with cryptocurrencies. This ban caused a sharp downturn in India’s cryptocurrency trading market. Before the ban, India’s trading volume was around $50 Million, which briefly increased to $ 75 Million and plunged to $10-15 Million after the ban came into effect in July 2018.
Indian exchanges such as Koinex, Coindelta, and WazirX changed their business model to P2P trading while ZebPay and Unocoin shifted their base of operation to Singapore. But now due to an innovative solution pioneered by Giottus, a cryptocurrency exchange startup, Indians can now freely deposit and withdraw fiat currency to a cryptocurrency exchange.
How does the system work?
The system makes use of trusted individuals with high liquidity value.
- Users deposit money to these trusted individuals using either UPI or IMPS.
- These individuals act as a temporary bank and notify the exchange about the deposit.
- The money is reflected in the user’s account within 30 min and now the user can freely trade.
- To withdraw, exchange requests these individuals to transfer the money to the user, through the user’s preferred means of transaction.
Current exchange support
Currently, this method is currently supported by 2 Indian exchanges: Giottus and Coindelta. Coindelta activated this feature on 4th September midnight. Both the exchanges are running a promotional offer to entice users to use their exchange.
- Giottus is giving 30 min withdrawal guarantee, else the user gets 10 XRP token.
- Coindelta is giving Rs. 100 for the first 100 users who deposit INR in the exchange.
Some people in the industry think the new way of depositing and withdrawing INR is more of a marketing ploy rather than an innovation and calling that as INR deposit/withdrawal by the exchange is incorrect.
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