Title: Guide to deposit to/withdraw from exchanges if Central Bank/RBI restricts Banks Post by: UKprod on May 15, 2021, 12:25:37 PM Hi Everyone,
Recently we have seen a trend of central bank such as RBI in India imposing restrictions on Banks from dealing with cryptocurrency exchanges. While this restriction in itself does not ban cryptocurrencies, it stops the free flow of crypto by users and exchanges. On a separate note, I have been facing issues in depositing Rupees into my WazirX account from a week. Since WazirX has tweeted that this issue is arising due to some issue with their Bank, it makes me wonder if this is due to RBI being a bit strict with banks in order to cut ties with crypto exchanges. In this regard, it is likely that this action would be challenged in the courts similar to 2019. But until then you may not be able to transfer or receive funds from crypto exchanges in fiat currency. While this is my hypothesis, I was keen to explore an alternative to deposit to/withdraw from my exchange if RBI completely bans any bank from dealing with crypto exchanges. Accordingly, I have jotted down a simple 3 step process (which is currently legal) that you could use to route your deposit to crypto exchanges.
Further do consider the following notes:
Trust you will find this post useful. Please feel free to share any other ideas that you have, which I can incorporate into the post, so that this can serve as a comprehensive guide for everyone. Title: Re: Guide to deposit to/withdraw from exchanges if Central Bank/RBI restricts Banks Post by: Theb on May 15, 2021, 03:15:11 PM This is a good workaround using another service to prevent any kind of banking restriction however it has its disadvantages such as providing another KYC for another type of platform and as well as other additional fees for processing your withdrawal to a bank and more importantly the service, OctaFX, will definitely see some "unusual activity" from your account since they'll definitely see that you are only using their service as a way of getting your funds around this kind of activity of course if flagged by many services for AML and other monetary compliance. That is why for countries where the crypto industry is hindered by the banks there most preferred method is direct P2P trading just like how Nigeria handles things with their crypto market.
Title: Re: Guide to deposit to/withdraw from exchanges if Central Bank/RBI restricts Banks Post by: teosanru on May 16, 2021, 08:52:03 PM I think a better and relatively safer option could be P2P offered by WazirX. WazirX was the very first exchange to bring this on the table and Indians for almost 2 years during the RBI Ban only used this P2P method for their deposits and withdrawal into cryptocurrencies. Now the best part is that no Bank would know why the transaction was made by the user. Also as it is on the WazirX portal only which ensures that users can do this only if they do KYC which means you are not dealing with any scammer and also the transaction is escrowed by WazirX. I think it's a game-changing feature that has really helped a lot of people in times where crypto is not actually banned but only banks cannot deal with exchanges. If you use OctaFX I am not sure how would you be able to defend the diversion of funds, it might even count as money laundering, I am not quite sure.
Title: Re: Guide to deposit to/withdraw from exchanges if Central Bank/RBI restricts Banks Post by: avikz on May 18, 2021, 06:15:09 PM That's a great workaround it seems. Might come handy when we need to withdraw or continue trading in overseas account. Because p2p trading might cone with a risk in case banks keep a constant vigil on such transactions. But is Octafx registered in India? If not, from which bank account you will receive your money from.
If you receive too many foreign deposits in your bank account, you might have to face scrutiny from bank or income tax department. So use with caution. Title: Re: Guide to deposit to/withdraw from exchanges if Central Bank/RBI restricts Banks Post by: UKprod on September 05, 2021, 02:21:11 PM That's a great workaround it seems. Might come handy when we need to withdraw or continue trading in overseas account. Because p2p trading might cone with a risk in case banks keep a constant vigil on such transactions. But is Octafx registered in India? If not, from which bank account you will receive your money from. If you receive too many foreign deposits in your bank account, you might have to face scrutiny from bank or income tax department. So use with caution. OctaFX does have a subsidiary in India and runs multiple advertisements in India. Though investment in forex is banned in India, you can use OctaFX as a medium of converting your bitcoin/ether into rupees. However, given that currently RBI has clarified that crypto is not banned in India, this entire issue itself should not arise. |