Cryptocurrency trading desks in India are adding crypto-to-crypto trading pairs to circumvent the Reserve Bank of India’s ban on trading cryptocurrencies. The announcement which was made by the RBI on April 6th said that entities registered with them should stop dealing in cryptocurrencies and companies that deal with cryptocurrencies.
Four different exchanges have moved to the Supreme Court in Delhi to stop the RBI’s circular from taking effect by filing a Civil Writ petition No.373 under Article 32 of the Indian constitution. These are Coindelta Exchange, Koinex Exchange, Throughbit Exchange and CoinDCX.
The court has admitted this case and set a date for the hearing on 24th May, with a notice issued to the RBI. The petition filed for the illegality of cryptocurrencies in India says that they are used in anti-national, illegal and nefarious activities such as money laundering, tax evasion, payment of ransom and other such activities.
Following these developments, prominent exchanges Zebpay, Koinex and Zecoex offered crypto-to-crypto trading on their platforms. Zebpay announced six new trading pairs with Bitcoin [BTC], for Litecoin, Ripple, EOS, OmiseGO, and Tron.
Koinex announced the launch of new Ripple based pairs for its platform a couple of weeks ago, with crypto-to-crypto trading for Aeternity, Litecoin, OmiseGO, Request Network, Golem, Tron, Nucleus Vision, and EOS paired with XRP.
This could be the first move by cryptocurrency exchanges to reduce their dependence on fiat currencies such as the INR, due to the withdrawal of support for these transactions. The Chief Executive of Zebpay said in a statement to The Economic Times:
“Even if there was no RBI circular, the crypto to crypto product would have happened. However, because of the circular and the fact that fiats (money) may no longer be in the picture, it definitely did hurry up and encourage the solution sooner.”
Twitter users responded to the development. User Bajrang said:
“RBI doesnot know anything about cryptocurrencies……hopefuly supreme court will help investors! !”