Cryptocurrency in India has been discouraged by the government despite believing that India should empower technologically. The Reserve Bank of India has advised all the financial institutions to prohibit any transaction in cryptocurrency. There have been notices, warnings and now a ban to put a full-stop on the crypto trade forever. However, the crypto enthusiasts have taken a way out to keep the market on in a legal way.
Indian cryptocurrency exchanges have cracked a method to continue crypto-fiat trades in a pretty much legal way. This new method is known as Peer-to-Peer (P2P) trading. It had become quite popular after the RBI enforced a ban on the crypto affiliated firms. It will provide the same interface to the customers and is almost untraceable for any finance authority because there are no intermediaries involved. In a layman’s word, this is simply buying and selling between two people in a virtual zone.
Peer-to-Peer (P2P) Trading Operations
According to Crypto News, Peer-to-Peer trade was earlier taking place outside exchanges. But with the ban tagged on the crypto market, this method has evolved in an organized way within the market. Cryptocurrency exchanges have turned into the facilitators of Peer-to-Peer trade. Exchanges like WazirX and Koinex have already announced a P2P method for their cryptocurrency transaction from July 5th, 2018.
The P2P platform of the exchange is termed as Koinex Loop which is integrated into their website and apps. Customers can access the same from there and do not require a further download. This is a blockchain based system which has a peer network that can settle payments efficiently.
Their P2P transfer on the exchange WazirX will be active soon with no legal hassles. The official statement of the exchange mentioned that their team has been working to design a solution to continue with cryptocurrency trade. It will facilitate both the buyer and seller by holding the crypto token in an escrow account. The system will release tokens as soon as buyer makes a payment.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]