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Bitcoin Bank Ban in Effect July 5, Supreme Court

Supreme Court has refused to extend a grace period allowing cryptocurrency entities to keep banking services beyond this week’s deadline set by the central bank.

EXCHANGES GO P2P

According to various media outlets, the Reserve Bank of India (RBI) will now succeed in implementing its ban on cryptocurrency business support on July 5. Exchanges and any other business dealing in cryptocurrency will no longer have access to banking services under the ban, meaning traders will be barred from withdrawing rupees via those businesses.

P2P facilitates direct crypto-to-fiat trading between individual users, with any bank transfers occurring from one private account to another without any formal links to cryptocurrency. With the banking ban by the Reserve Bank of India, cryptocurrency exchanges in the country are trying to find banking alternatives. Two Indian exchanges have announced that they are launching P2P crypto trading services which will allow traders to buy and sell crypto legally even after the central bank’s ban. Launched in March, Wazirx currently supports the trading of 37 cryptocurrencies against INR and 17 BTC trading pairs.The exchange announced last week that it is launching a P2P crypto transfer service which it claims to be “the most legal way to buy/sell cryptos in India after the RBI ban,said CEO Nischal Shetty.

Wazirx releases the crypto to the buyer upon receiving a confirmation from the seller, he noted. “We verify the KYC details of every user before allowing them to trade on Wazirx, and keep a record of each and every transaction that occurs on our exchange.”

Another Indian crypto exchange, Koinex, also announced last week that it is launching Loop, “a peer-to-peer network for digital assets transactions using fiat currency”. The new service will be integrated into the Koinex web platform and the mobile app. Koinex users will automatically have access to it, said co-founder Rahul Raj.

Decentralized exchanges such as Bisq and HodlHodl could also reap the benefits of the ban alongside P2P trading platforms like LocalBitcoins whose volume could see a spike in the coming weeks.

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