Several cryptocurrency transactions are facilitating peer-to-peer (P2P) deals while some platforms are directly accepting deposits from coin buyers to beat the controls forced by banks and payment organizations amid the Reserve Bank of India (RBI) voicing its reservations on these virtual digital assets.
In a P2P transaction, the trade, after receiving an order from a buyer, shares the seller’s bank account details with the buyer. The buyer then directly transfers funds to the sellers using any of the regular online payment options while the seller moves the cryptocurrency lying in her wallet with the exchange to the buyer’s crypto wallet.
The exchange simply connects the buyer and merchant yet the money does not flow through the trade unlike in any modern bourse running a faceless order matching software engine in executing orders and settling trades.
“This is now how an exchange should be functioning. It’s certainly less proficient. However, apparently, there is no violation of any guideline or regulation. It’s a basic money transfer from A to B over net banking or IMPS or NEFT, and it’s occurring outside the exchange,” an official with one of the exchanges told ET requesting anonymity.
On the other hand, some of the exchanges have picked a different mode of receiving funds directly in their ongoing records from crypto buyers. When the money is remitted, the sum is credited to the trader’s account with the trade, which can then be used to purchase cryptos.