Crypto bourses try P2P deals, direct deposits to overcome payment curbs

economictimes.indiatimes.com:

Mumbai: Several cryptocurrency exchanges are facilitating peer-to-peer (P2P) deals while some platforms are directly accepting deposits from coin buyers to overcome the curbs imposed by banks and payment companies amid the Reserve Bank of India (RBI) voicing its reservations on these virtual digital assets. In a P2P transaction, the exchange, 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 seller 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.Also Read: Crypto investors may switch to peer-to-peer transfer in case of ban

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The exchange simply connects the buyer and seller but the money does not flow through the exchange — unlike in any modern bourse running a faceless order-matching software engine in executing orders and settling trades. “This is not how an exchange should be functioning. It’s certainly less efficient. But apparently there is no violation of any regulation or law. It’s a simple money transfer from A to B over net banking or IMPS or NEFT, and it’s happening outside the exchange,” an official with one of the exchanges told ET requesting anonymity. Alternatively, some of the exchanges have chosen a different mode — receiving funds directly in their current accounts from crypto buyers. Once the money is remitted, the amount is credited to the trader’s account with the exchange, which can then be used to purchase