Cryptocurrency Trading Craze In Indian Community: Traders Find Ways Amidst Restriction Imposed By RBI
Now that the blockchain technology has already accelerated its footprints in the emerging country like India, the Indian crypto traders have plotted the ways to trade cryptocurrencies mostly the crypto major Bitcoin to thwart the ban imposed by the central bank – Reserve Bank of India. The central bank has already warned all the financial institutions from offering services to all those companies that deal with cryptocurrency.
However, amongst the restrictions imposed by Reserve Bank of India, Indian traders have started finding various ways to escape the ban. Since there are a variety of methods that they can use, where one is Dabba trading to be used by traders as per the valid source from Business Today.
The excerpt from the news as follows:
“Ever since the banks were stopped from providing financial services to digital exchanges, the trade of bitcoin through Dabba trading has increased manifold”.
On the transaction summary front, through Dabba trading brokers don’t execute trades on the existing system in place like commodity or stock exchange. On the contrary, they transfer money with the help of Hawala network and execute a trade by using an overseas bank trading account based in Dubai, UK, and Europe. This will, in turn, accelerate the Dabba operators betting on bitcoin and related transaction thereby increasing their earnings.
As per the valid source of the finance publication, such traders are usually located in Mumbai, Kolkata, Surat, Rajkot. Their main aim is to build a bridge the gap between a customer and foreign trading company. While in the transaction, the broker accepts payments in cash and purchases bitcoins through the overseas trading account and sells them when the stake placed in India is settled. The spread in the transaction is paid in cash to the customer as a benefit. Most of the transactions are done through Messaging App called Telegram which is a cloud-based instant messaging services with end to end encryption where the money in cash is transited through the Hawala channels as per the valid source of finance publication. However such kind of transactions also executed with the help of official channels where brokers maintain both the Indian as well as overseas bank accounts.
Needless to say that the use of cash in physical form for trading cryptocurrency has increased since the country’s central bank has imposed certain restrictions. Because people have started using cash to earn more money through cryptocurrencies.
Additionally, in order to escape the restriction imposed by Reserve Bank of India, a number of crypto exchanges in India have launched their peer to peer (P2P) trading solutions.
Let us not forget that the human mind is eclectic as it always finds where to get comfort. However, it is highly recommended to trade with cryptocurrency (because it has a great potential) following strong ethics in place, only then the long-term story of the crypto-related world will be fascinating!!