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

Bypassing the bankers

Some exchanges have turned to alternative payment methods, such as collecting payments directly from customers' bank accounts. After a deposit is made, the exchange credits the user's crypto wallet, allowing them to purchase digital assets.

This strategy may also pose problems for exchanges, according to lawyers.

"Regulatory issues can arise if it is perceived that exchanges are providing some sort of wallet vehicle to traders by accepting funds directly from buyers,"

Investors and traders have moved funds overseas for use in foreign markets; however, India's overbearing banking industry has imposed some restrictions that require additional circumvention.