SPEEDING UP OF CRYPTO TO CRYPTO TRADING

SPEEDING UP OF CRYPTO TO CRYPTO TRADING

BE/RBI NOTE/16/2018

We might recall that on April 6, 2018, Reserve Bank of India, had made it mandatory for banks, e-wallets and payment gateway providers to withdraw support for cryptocurrency exchanges in a period of three months.

REPERCUSSIONS:

  • This has now compelled the country’s three large cryptocurrency exchanges namely ZEBPAY, KOINEX AND ZECOEX to offer its customers, trading between virtual currencies in its platform.
  • It is claimed that even if there was no instruction from RBI, crypto to crypto product would have happened. A report adds, that since a normal currency money would not be in the picture, the solution has been hurried up.

The interesting factors to be noted are:

  • The exchange between the virtual currencies is termed as TRADING PAIRS.
  • TRADING PAIRS refers to trading between one type of cryptocurrency and another type.
  • To quote, in the TRADING PAIR, Ethereum and Bitcoin (ETH/BTC), one can buy Ethereum with Bitcoin based on the volatility of the market.
  • This is termed as the primary step in exchange market, which would reduce reliance on rupee since banks are contemplating to withdraw their support in the coming months.

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