Indian Cryptocurrency Exchanges Turn to Peer-to-Peer Transactions to Avoid Payment Channel Restrictions

To meet the country's growing demand for digital assets, India's cryptocurrency business has been looking for ways to bypass government and banking restrictions.

Many Indian bitcoin exchanges are facilitating peer-to-peer transactions as part of an ongoing push to circumvent restrictions from banks and payment companies.

Exchanges receive buy orders and then connect buyers and sellers directly. The buyer can then transfer the funds to the seller through a bank or payment platform, and the seller transfers the cryptocurrency from their exchange wallet to the buyer's wallet.