Further maneuvers are afoot since the last Bitcoin News update about Indian traders circumventing the Reserve Bank of India (RBI) ban on cryptocurrency, and this one is very much a “Dabba Dabba Doo” moment.
One strategy that some exchanges are taking to sidestep the RBI is encouraging peer-to-peer trading, thereby cutting out the banks completely. Out of this move, a new service KoinLoop has launched such a service, born out of two collaborating exchanges: KoinEX and WazirX.
WazirX CEO commented, “If banking is something the exchanges are not allowed to do, then the solution is something that direct banking doesn’t come in.”
Now, they’ve come up with another way of trading in Bitcoin called “dabba” which has now taken off. Dabba can be best described as a way of trading through something called a “hawala” network rather any system connected with an exchange. The trading only takes place through an overseas bank account mainly based in the UK with Dubai another favorite.
Reports suggest that most of the hawala network traders are operating out of Ahmedabad, Surat, Rajkot, Kolkata and Mumbai working as a bridge between the customer and one of the trading companies overseas. Ahmedabad, Surat, Rajkot, Kolkata and Mumbai best described as thus:
“The broker accepts money in cash, buys Bitcoins using an overseas trading account and sells them when the bet placed in India is settled. The difference is paid in cash to the customer.”
It has been reported that most Dabba happens via the messaging app Telegram, with money as cash routed through the various channels in the hawala system. The money then passes either officially or unofficially to the foreign account where Bitcoins are transacted. Payment is then made in cash or check and the deal is done: no exchange, no Indian bank.
As mentioned in another Bitcoin News post, peer-to-peer (P2P) trading has also become a popular method given the current status quo, which may or may not change soon depending on which sources the information comes through. A few exchanges launching P2P trading services include KoinEX, WazirX, and Coindelta. A few others such as Giottus, Instashift, and Zecoex also offer some forms of P2P systems.
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