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Indian Exchanges Continue to Flout Crypto Banking Ban

The Reserve Bank of India (RBI) banking ban on cryptocurrencies in India is having less impact than the government anticipated as more exchanges go back to work.

Three exchanges have announced the return of Indian rupee (INR) deposits, contrary to the government ruling in July, which effectively removed INR deposits and made withdrawals illegal. Petitions against the current ruling are up for Supreme Court scrutiny later next week. On 12 September, Koinex announced rupee deposits and withdrawals were now back in operation at their exchange, referring, rather romantically, to the “old times”:

“We are happy to announce the revival of INR in the crypto universe through a new peer-to-peer deposit and withdrawal mechanism for INR transactions… Just like the old times, users will be able to deposit and withdraw funds directly from their INR wallets.”

Another exchange, Coindelta, is back to business as usual too with an equally folksy announcement on their website:

“We have resumed back the INR deposits and withdrawals on Coindelta. Not only this, your old favorite INR markets are back where you can trade with your INR.”

Two other platforms, Koindesk and Giottus, are back too, the latter with a peer-to-peer (P2P) system, allowing its users to withdraw rupees. P2P has become a way that many exchanges have developed for their own homemade way of operating. Exchanges now using a P2P system for accessing and spending their rupees include WazirX, Intashift, and Coind.

WazirX head Nischal Shetty suggested that the exchange was seeing more that one match per minute through its P2P facility, with trading increasing daily, proving that crypto is very much alive and well on the subcontinent.

Rahul Chitale of Instashift said: “Since the last set of RBI-related developments in the past couple of months, we have continued to see strong 20-25% growth in trading volumes month on month over the last 2 quarters of our operation.”

In the meantime, Dabba growths in strength, profiting from the RBI ban. Working via the messaging app Telegram, with money as cash routed through the various channels in the hawala system. The money then passes either officially or unofficially to the foreign account where Bitcoins are transacted. Payment is then made in cash or check and the deal is done: no exchange, no Indian bank.

 

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P2P Becoming the Indian Way to Trade Crypto Following the Banking Ban

Peer to Peer (P2P) trading is on the march in India due to the country’s banks shutting down crypto services this year.

Since the Reserve Bank of India (RBI) decision earlier this year, Indian traders are adapting as only Indians can do, and are doing it with great success too, with homemade P2P platforms and exchange adaptations using P2P trading.

Peer-to-Peer trading cuts out the banks completely. Out of this move, a new service KoinLoop has launched such a service, born out of two collaborating exchanges; KoinEX and WazirX. The latter’s CEO argues that his company also has the cheapest BTC price in India, adding:

“If banking is something the exchanges are not allowed to do, then the solution is something that direct banking doesn’t come in.”

As Bitcoin News reported recently Dabba is also taking off as a way of avoiding the RBI ban. Best described as a way of trading through something called a “hawala” network rather any system connected with an exchange, Dabba is becoming increasingly popular. The trading only takes place through an overseas bank account mainly based in the UK, with Dubai another favorite.

Mainly using the messaging app Telegram its use best explained simply thus:

“The broker accepts money in cash, buys Bitcoins using an overseas trading account and sells them when the bet placed in India is settled. The difference is paid in cash to the customer.”

The KoinEX system offers a P2P trading solution called Loop which offers clients access to the trading of BTC, ETH, and XRP. CEO Rahul Raj explains:

“…buyers and sellers on Loop can create their own listings (like a marketplace) or explore existing listings to choose their best trades,” adding, “…while it’s still early days, Loop has been very well received by the Indian trading community and we are seeing increasing traction every day.”

LocalBitcoins have also seen a local boost to trading since the ban with the Indian rupee (INR) volume increasing 25% from around 68 million rupees to 85 million rupees to August. BTC saw a similar hike in trading volumes with a hike of 23% over the same period.

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“Dabba” Trading yet Another Way of Getting Around India’s Crypto Ban

Further maneuvers are afoot since the last Bitcoin News update about Indian traders circumventing the Reserve Bank of India (RBI) ban on cryptocurrency, and this one is very much a “Dabba Dabba Doo” moment.

One strategy that some exchanges are taking to sidestep the RBI is encouraging peer-to-peer trading, thereby cutting out the banks completely. Out of this move, a new service KoinLoop has launched such a service, born out of two collaborating exchanges: KoinEX and WazirX.

WazirX CEO commented, “If banking is something the exchanges are not allowed to do, then the solution is something that direct banking doesn’t come in.”

Now, they’ve come up with another way of trading in Bitcoin called “dabba” which has now taken off. Dabba can be best described as a way of trading through something called a “hawala” network rather any system connected with an exchange. The trading only takes place through an overseas bank account mainly based in the UK with Dubai another favorite.

Reports suggest that most of the hawala network traders are operating out of Ahmedabad, Surat, Rajkot, Kolkata and Mumbai working as a bridge between the customer and one of the trading companies overseas. Ahmedabad, Surat, Rajkot, Kolkata and Mumbai best described as thus:

“The broker accepts money in cash, buys Bitcoins using an overseas trading account and sells them when the bet placed in India is settled. The difference is paid in cash to the customer.”

It has been reported that most Dabba happens via the messaging app Telegram, with money as cash routed through the various channels in the hawala system. The money then passes either officially or unofficially to the foreign account where Bitcoins are transacted. Payment is then made in cash or check and the deal is done: no exchange, no Indian bank.

As mentioned in another Bitcoin News post, peer-to-peer (P2P) trading has also become a popular method given the current status quo, which may or may not change soon depending on which sources the information comes through. A few exchanges launching P2P trading services include KoinEX, WazirX, and Coindelta. A few others such as Giottus, Instashift, and Zecoex also offer some forms of P2P systems.

 

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