RBI’s recent move on cracking down the cryptocurrency purchase within India has now led cryptocurrency exchanges within India to move overseas to crypto-friendly countries.
A couple of weeks back, RBI announced that any entity regulated by them such as banks, wallets etc. are prohibited on grounds of dealing or providing services of any sorts to any individual or business entities for buying or selling of cryptocurrency such as bitcoins.
However, Cryptocurrency Exchanges are on crossroads if they should shut down their operations or move to crypto-friendly nations where they can still run their exchange platform.
Shubham Yadav, co-founder of Coindelta, a cryptocurrency exchange told,
“It won’t be possible for us to function in the current regulatory environment with existing business models. Therefore, several firms are looking at registering their head offices out of India,”
These cryptocurrency-friendly locations include
- Cayman Islands
CEO of another virtual exchange said that shifting their set up to another country will also help their cryptocurrency exchange platform to globalize.
Switching to Alternatives
The investors will be able to buy digital currencies in Rupees only till July 6th, 2018. Hesham Rehman, CEO of Bitxoxo, another cryptocurrency exchange, talked on possible alternatives to buy crypto assets.
“The current remittance regulations will not allow customers to convert rupees into any other currency and make purchases from an international exchange. Therefore, the only option left will be crypto-to-crypto trade for (the existing) investors that allows you to buy one cryptocurrency in exchange for the other.
The other option is buying by paying cash in another nation, which may not be feasible.”
However, Nischal Shetty, founder and CEO of WazirX, another Indian cryptocurrency exchange talked about the challenges attached to this protocol.
“Trust is an important concern here as these transactions take place between two individuals. It works on the guarantee that you will get the cryptocurrency after giving cash. So there are concerns about frauds or illegal transactions,”
Hopefully, Indian cryptocurrency exchange platforms will survive these adverse times given that they take measures in advance.
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