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Cryptocurrency: Not able to buy crypto through UPI, IMPS, RTGS and NEFT? You can follow this method for payment in rupees

With the closure of IMPS, NEFT, UPI and RTGS services on crypto exchanges, now the only option for investing in these virtual assets is peer-to-peer (P2P) transactions.

Cryptocurrency: India’s crypto policy is not yet clear and it can be seen that the government and regulatory bodies are trying to make it difficult to invest in these virtual digital assets through Indian Rupee (INR), due to which it is now possible for investors to invest in cryptocurrencies. Investing in is becoming difficult. Many crypto exchanges in India have stopped all options to buy cryptocurrencies with Indian Rupees through UPI to avoid any conflict with the National Payments Corporation of India (NPCI). NPCI recently issued a statement saying that it is not aware of any crypto exchange in India transacting through UPI. Following this statement, payment wallet MobiKwik stopped supporting crypto trading on exchanges. Earlier, users could deposit money into the MobiKwik wallet via UPI and then use it to buy crypto on exchanges.

At the same time, exchanges like CoinSwitch Kuber have temporarily banned all deposit services including UPI and bank transfer through NEFT, RTGS and IMPS. At the same time, other platforms still see the option of Netbanking to buy crypto with Indian Rupees, but such banks are very few. In fact, large banks are not supporting crypto exchanges, making it difficult for their own customers to buy crypto.

What do experts say

Experts believe that it is very wrong to keep bank customers interested in buying or investing in crypto away from financial services, especially when crypto has not been declared illegal in the country. Sharat Chandra, VP of Research and Strategy at EarthID, said, “It is very wrong to turn crypto investors away from financial services. Not having the option of UPI and IMPS means that there is no easy way to convert Indian Rupee to crypto.”

With the temporary closure of IMPS, NEFT, UPI and RTGS services on crypto exchanges, the only option for investing in these virtual assets is peer-to-peer (P2P) transactions, which can be done online or offline. Tushar Choudhary, Director, Digital Assets LLP, told FE Online, “P2P transactions are still open. Even when RBI banned all banking channels of crypto in the year 2018, the exchanges were still running through P2P.

Is it safe to invest in crypto via P2P?

Crypto experts say that P2P transactions in virtual digital assets are as secure as any transaction between two humans. Chowdhury said, “There is no problem of authenticity in crypto, no one can sell you fake bitcoins because transactions happen on the blockchain. So there is the same risk as there is in offline transaction of any product or any service between two persons. There is no additional risk involved.”

Chandra says, “Peer to peer crypto trading on P2P exchanges is powered by an escrow wallet where crypto investors need to remit their funds. Multi-cryptocurrency wallet support is offered on decentralized exchanges, making it easier for investors to trade.” He further added that it is important to note that crypto to crypto trading on decentralized exchanges does not involve an escrow wallet.

Can the government ban P2P also?

Experts say that it will not be easy for the government to ban P2P transactions as it is a constitutional right of citizens to buy or sell any service. Choudhary further said, “The government can ban anything and everything… If the government says tomorrow that no person can buy or sell crypto through P2P, then the matter can be taken to court or judiciary. Because it is our constitutional right to buy or sell any service.

He further said, “The government does not recognize cryptocurrencies, but they should now clarify what their policy is regarding crypto. RBI has been saying that crypto will have a negative effect on the economy, but till date it has not been proved that how crypto is having an adverse effect on the financial market and currency of the country.

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