Indians Use Creative Means to Trade Bitcoin Amid RBI Ban


Indian crypto traders have found some creative ways to trade cryptocurrencies, especially bitcoin, to circumvent the crypto banking ban imposed by the country’s central bank. The Reserve Bank of India has banned financial institutions from providing services to companies dealing in cryptocurrency. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Money Finds a Way Following the crypto banking ban by the Reserve Bank of India (RBI) which went into effect last month, Indian traders are finding multiple ways to bypass the ban. One of the methods they are using is referred to as Dabba trading, Business Today recently reported: Ever since the banks were stopped from providing financial services to digital exchanges, the trade of bitcoin through Dabba trading has increased manifold. In Dabba trading, brokers do not execute trades on a “system connected with commodity or stock exchange,” the news outlet described. Instead, they transfer “money through hawala network” and trade “using an overseas bank trading account,” most of which are based in Europe, especially the UK and Dubai. While “mostly used for trading in stocks,” the publication explained that this method “has seen an upsurge as traditional Dabba operators are accepting bets on bitcoin too, giving a boost to their overall earning,” adding: Such traders are based out of Ahmedabad, Surat, Rajkot, Kolkata and Mumbai. They work as a bridge between a customer and foreign trading company. The broker accepts money in cash, buys bitcoins using an overseas trading account and sells them when the bet placed in…
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