India crypto buying: Indians continue buying cryptos via P2P and other methods even after UPI halt

Synopsis

Though most top exchanges saw a surge in buying activity in the last few weeks, as much as 60-80% of all transactions are now happening through some of the new methods introduced by the crypto exchanges.

These methods now account for almost 80% of all transactions on exchanges, up from about 10-15% a year ago.

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Mumbai: Indian crypto investors are now opting for peer-to-peer transfers, spot trading and WhatsApp or Telegram groups to trade currencies due to unpredictable banking services being offered to exchanges by the banks.

Recently, SBI blocked the receipt of funds by crypto bourses on its UPI platform.

Though most top exchanges saw a surge in buying activity in the last few weeks, as much as 60-80% of all transactions are now happening through some of the new methods introduced by the crypto exchanges.

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Industry trackers say P2P crypto exchanges have seen a spurt in other methods such as spot trading, direct buy- and-sell, selling and buying through WhatsApp/Telegram groups and direct buying through mutual friends.

These methods now account for almost 80% of all transactions on exchanges, up from about 10-15% a year ago.

“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.

P2P is an option that is now offered by most crypto exchanges where buyers can directly exchange fiat money against cryptocurrency from another individual.

“P2P is not a way to trade crypto, but instead, it’s a fiat to crypto on-ramp solution. In the absence of banking options during the banking ban, people would use P2P to convert their fiat to crypto (USDT) and vice-versa. Ever since the banking ban has been struck down by the Supreme Court, most users prefer banking to P2P to deposit/withdraw INR from WazirX,” said Nischal Shetty, CEO WazirX, another cryptocurrency exchange.

Some of the exchanges claim that several other banks are continuing to offer services.

A recent Reserve Bank of India missive cited that banks cannot use its 2018 circular on cryptocurrencies that prohibited any dealing in virtual currencies, as it was struck down by the apex court, ET wrote on August 31.

Many of the exchanges are so buoyant that they are floating Systematic Investment Plan (SIP) products and funds where customers can invest every month to 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.

Source

Updated: 09/18/2021 — 02:00