Indian Crypto traders have had hard times since the country’s central bank, the Reserve Bank of India (RBI) ordered the financial institutions not to provide banking services to Cryptocurrency exchanges. However, the Crypto traders have come up with creative methods that have enabled them to survive while waiting for the ruling by the country’s Supreme Court today. Although most of these traders look like they are inactive, they are just hibernating waiting for the next opportunity. Some traders want the government to hurry up in putting regulations in place.
All Is Not Gone
Since RBI ban on Cryptocurrency took effect in July, most businesses in the sector have seen a significant reduction in trading. Nevertheless, although the ban was intended to end the trading of the virtual currencies in the country, some businesses have come up with creative methods that have enabled them to remain operational. Most of those who have looked for alternative ways to survive are ardent supporters of this innovation who see the potential of the digital assets in the future.
Some traders have opted to open accounts in more Crypto-friendly countries such as the US. Vikash P is one such trader who holds the digital currencies in other countries. Such traders have vowed to keep investing in the sector because of the value of the sector. For instance, Bitcoin and most of the other Cryptocurrencies had little value a few years ago but have since then appreciated at high rates. Even when the virtual currencies remain banned in the country, others are turning to face-to-face cash deals, local websites that support conversion of the local currency to Cryptocurrency, and Moneygram among others.
Another Crypto trading method that has also become popular is the P2P. This technique allows the traders to transact through escrow accounts owned by the exchanges. Wazirx came up with its P2P system before the enacting of the RBI ban. The exchange’s CEO claims that its P2P program has become very successful. Currently, Wazirx P2P sees over 1 trade per minute.
The Negative Impacts Of The RBI Ban
It’s undeniable that the RBI ban had taken a toll on India’s Cryptocurrency trade. One Crypto trader, Ahmedabad said that since the introduction of the ban, the hype has come down. Moreover, Cryptocurrency traders have ‘paused’ their activities as there is fear of introduction of an income tax on the sector. This has led to a significant decrease in the trading volume of the virtual currencies in the country according to Mohit G., a New Delhi-based financial expert.
Traders Remain Optimistic
It appears the ban has mostly affected those with little understanding about the technology. Those who see the potential of the digital currencies in powering the economy in the future are optimistic that good days are coming. One such confident trader called Vikash blames the current confusion in the country’s finance sector on the lack of knowledge about Cryptocurrencies. He opines that putting in place strong KYC elements can enable the government to control the trade in the country.
Sidharth S is another staunch Crypto trader that believes the government should not waste time in regulating the sector. He believes that the government cannot stop the noble idea and is not will willing to lose revenue as more players are moving to Crypto-friendly countries. Crypto traders are eagerly waiting for the Supreme Court’s ruling on the RBI ban today and are optimistic they will be allowed to operate.