Bitcoin carries a different meaning for different individuals. To some it is a future of freely moving currency untied to any central bank in the world, while to others Bitcoin is purely a digital entity characterized by questionable value and dubious origin. Bitcoin has been a part of this fast-growing technology world since 2009 when a person or persons under the pseudonym Satoshi Nakamoto introduced a unique network to the internet world that now hosts a digital currency. Bitcoin is a cryptocurrency or digital asset that uses the rules of cryptography for the regulation and generation of units of currency.
Though the hype surrounding Bitcoin had taken over the world, RBI (Reserve Bank of India), in June 2018, restricted RBI regulated entities to support buying and selling of Bitcoin. This led to a panic among bitcoin holders. RBI’s announcement has led to numerous banks withdrawing their support from many of the top exchanges of the country that has resulted in a halt in cryptocurrency trading and holding among investors and traders.
In such a situation, the most important question is how to buy bitcoin in India after the ban. An answer to this question is a P2P (peer-to-peer) trading exchange platform that enables one to purchase bitcoins in India even after the ban by RBI. A P2P exchange supports the most popular payment methods and allows individuals from different countries to purchase Bitcoin for their local currency. A cryptocurrency start-up in Finland known as LocalBitcoins.com is one such platform that lets you buy Bitcoins in exchange for your local currency. In India, this company has operations in many of the major cities of the country such as Mumbai, Hyderabad, Kolkata, Delhi, Ahmedabad, Chandigarh, Pune, Guwahati and many more.
WazirX is another bitcoin exchanging platform and is on its way to becoming India’s most trusted cryptocurrency exchange platform. The exchange allows the customers to buy, trade as well as sell Bitcoin, Litecoin, Ripple, Ethereum and many other cryptocurrencies in India. WazirX follows the KYC norms, has a mobile application for both Android and iOS users and also claims to provide multiple hundred transactions per second.
The way these P2P exchanges work is that the buyer selects the price from the order book and places a buy order. The exchange will take the Bitcoin from the seller and move it to an escrow account. The buyer will then transfer the money to the seller. This can be done in cash or via various other payment methods. Once the payment is transferred, the seller will confirm and Bitcoin will be transferred to the buyer. In case of a dispute, most reputed exchanges have an arbitration mechanism.
At first, this seems like an imperfect system but it works well in India.
The ban on Bitcoin by Reserve Bank of India had led to a situation of panic among the Bitcoin holders whose primary concern was how to sell Bitcoins in India after the ban. With the RBI’s ban on Bitcoins coming into effect, all the banks and financial institutions are prohibited from dealing with entities that engage in buying or selling Bitcoin or other cryptocurrencies. But this does not lead to the major assumption that there are no ways left to sell the Bitcoins. There are still some ways through which these virtual currencies can be sold. Some of the full proof ways to sell cryptocurrency in India after ban include the following:
Those who still wish to trade and desire to function without any disruptions by the RBI ban can transfer their holdings to a foreign exchange platform. The transfer process of Bitcoin to the foreign exchange platforms is quite easy and hassle-free. International exchanges like Binance do not require KYC and accept crypto tokens from any country. This makes them a good choice for those who are fed up of the restrictive environment in India.
Peer-to-peer (P2P) exchanges is another method that can be used to sell the Bitcoins successfully. The peer-2-peer method of exchange was developed by WazirX and Koinex Loop, whose main motto was to eliminate the banking systems which was earlier used for the trading of Bitcoin and other cryptocurrencies.
Though the ban of RBI on Bitcoins came as a massive blow to this virtual currency platform, it does not imply that Bitcoin has become illegal in India. Thus, indicating that Bitcoin is legal in India and one can sell or purchase these Bitcoins through certain specified methods only. One can buy Bitcoins with the use of NEFT or other modes of bank transfers or just cash payments, at many great exchange platforms. Most of them are easy to use and have great support to get a newbie started. All these trades are legal and nothing in the RBI circular says otherwise. All these exchanges pair popular cryptocurrencies with Indian Rupees and follow the KYC norms that help the government track the transactions.
Users have also started paying taxes for the profits earned from the crypto transactions and that makes them even better for the government and the RBI.
There are a number of exchange platforms for bitcoin the best Bitcoin exchange in India in 2019 includes WazirX, Purse, Localbitcoins, Koinex Loop and a few more. With the Indian government still mulling over the regulatory framework that will govern the cryptocurrency sector, the purchase and sale of these have become a little tricky though not impossible. In view of this situation, the Bitcoin reviews state the fact that in spite of the ban on Bitcoin by RBI there is quite a possibility that trade of cryptocurrencies shall continue in the near future as well through various alternatives and exchange platforms.
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