Bypass banking restrictions through P2P in the Indian crypto exchange market
Cryptocurrency exchanges in India's virtual market use a peer-to-peer P2P network to avoid restrictions imposed by banking systems and government agencies.
The crypto exchange works according to the following scheme:
- Receives a purchase order from a customer.
- Links directly the buying and selling parties.
- The client makes a payment through a banking organization or a payment system.
- The seller credits coins from his virtual wallet to the buyer's details.
This scheme allows you to bypass the participation of banking and payment systems in the transfer of digital assets between exchange users.
The circumvention of restrictions on Indian crypto exchanges was triggered by the introduction of new measures in the sector. Employees understand the wrongness of actions, but do not qualify them as contrary to the law. They explain everything by a simple transfer of assets from one point to another. The Indian Reserve Bank responded by issuing a number of warnings regarding the organization of such transactions.
Coinbase exchange , amid pressure from the Central Bank of India, was forced to stop its activities in the country a few days after the launch. The organization planned to be realized on the basis of the Unified service system Payments interface . State financial regulators froze the process. A similar decision also affected the CoinSwitch exchange. Kuber . Operations for depositing and withdrawing digital assets through the payment system on their platform have been stopped.
Banking institutions tightly control virtual financial activities and any ongoing actions in the cryptosphere , which led to the search for a way out of the situation.
Some exchange structures receive assets directly to their bank accounts from clients. After enrollment, the exchange replenishes the user's wallet and allows you to make purchases of virtual currency. Turning to lawyers, it became known that the method is fraught with problems for exchange structures related to regulation.
The difficulties with the fiat currency and the constant pressure from banks and the government have prompted investors and traders to transfer assets abroad and carry out monetary transactions internationally. This option also has its limitations on the part of the banking sector and provokes exchange structures to look for new ways - how to get around the imposed bans.