Having banned transactions to and from crypto exchanges, State Bank of India (SBI) is pushing local crypto investors towards riskier trading practices, such as peer-to-peer transfers and over-the-counter trading through WhatsApp and Telegram groups.
During the last few weeks Indian exchanges saw a significant surge in buying activity; however, almost 80% of all crypto-related transactions are now happening through some of the new methods introduced by the crypto exchanges.
According to industry trackers, more and more investors currently prefer spot trading through P2P exchanges, as well as buying and selling crypto directly through friends of friends, and WhatsApp and Telegram groups.
Peer-to-peer trading (P2P) allows traders to buy crypto from each other using fiat money.
“In India more than 90% of the users who come onboard from fiat currency use P2P marketplace. A large chunk of users also prefers to directly deposit their cryptocurrency on the OKEx platform to make use of the advanced trading features,” said Jay Hao, CEO of cryptocurrency exchange OKEx.com.
According to the Reserve Bank of India (RBI), most crypto-related operations are still available in the country. Banks had to use RBI’s 2018 memo on cryptocurrencies that prohibited any dealing in virtual currencies up until March 2020. But the document was struck down by the country’s apex court.
Many exchanges started offering Systematic Investment Plan (SIP) products after this announcement. Now their clients can invest every month and buy a handful of crypto assets.
“Investors can earn interest up to 1800% in a 5-year SIP plan which is unmatched by any other asset class in the world,” said Shivam Thakral, CEO of BuyUcoin.
There are rumours that India is following in China’s footsteps and might become the first country to completely prohibit cryptocurrencies in order to launch its own CBDC.
Indian traders are now choosing peer-to-peer transfers, spot trading and WhatsApp or Telegram groups to trade cryptocurrencies.
Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.
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