Indian Crypto Exchange Unocoin Shuts Down Withdrawals Following Central Bank Orders

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Tue, 07/24/2018 - 10:28
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Yuri Molchan
Unocoin closes down deposits and withdrawals in rupees until an alternative is found
Indian Crypto Exchange Unocoin Shuts Down Withdrawals Following Central Bank Orders
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The Unocoin exchange has suspended deposits/withdrawals in the local fiat currency. This move has been done to comply with the demands of the Reserve Bank of India (RBI) in the run-up to the verdict of the Indian authorities regarding virtual assets and regulations intended to launch in their respect.

Background

In April 2018, RBI gave local banks a three-month notice to stop servicing crypto companies, mainly exchanges that trade virtual coins. Later on, the banking authorities admitted that this move had been made without any proper research.

Still, in three months banks did what they were ordered to do. In return, Indian crypto trading startups sued RBI for laying this ban on them.

The court has postponed the final decision on electronic assets’ official status in India until autumn. Meanwhile, trading electronic coins is banned.

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Nevertheless, the regulators of India are mulling an option of categorizing crypto as commodities. This solution if implemented could solve the problem and let exchanges go on to work legally.

Alternative ways of trading

To somehow adapt to the current state of affairs, Indian digital exchanges, like Unocoin, are looking for alternative options to continue their operations. One of such workarounds is trading operations with crypto only. Another way which has been found so far is peer-to-peer arrangements for transactions.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.