Indian cryptocurrency exchanges are at the verge of shut down after the ban imposed by the Reserve Bank of India on cryptocurrency. The exchanges were having a flourishing business until the ban was enforced by the regulatory bodies. Ever since the Bitcoin reached its highest value in the crypto trade last December many investors got attracted to this new mode of currency. However, the exchanges are not going let this business eliminate so easily.
In a recent update, it is mentioned that cryptocurrency exchanges have started forging ahead with unique solutions to facilitate their clients. This is all done with keeping the regulations and policies that do not affect the condition of the ban. The condition of ban states that no finance institutions and banks are allowed to make any transactions for the digital currency.
How Does Peer-To-Peer Operates?
Following the condition given by the RBI, exchanges have blocked fiat support. However, they have upgraded their systems to perform peer-to-peer and crypto-to-crypto trading. In the given exchange model the buyer and seller make the deal and exchange hold the virtual currency which is transferred after the seller confirms the payment receipt from the buyer. The exchange then releases the coins to the buyer.
There are several exchanges which have adopted the model already and continue to trade. However, this doesn’t solve the problem as the ban continues to remain for further next hearing. The Supreme Court backs the decision of ban stating there is a possible security threat which needs to be addressed before getting in to the trade. Although, the court also noted that the consideration of the other side is equally important.
The recent argument of the case was heard by a three-judge bench of the Supreme Court of India and the final decision will be unveiled on September 11 after hearing points by both the parties. As of now, the fate of cryptocurrency still remains unclear.[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. ]