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WazirX adds INR/Tether [USDT] pair, P2P exchange to offset RBI ban

Anirudh VK



WazirX adds INR/Tether [USDT] pair, P2P exchange to offset RBI ban
Source: Unsplash

WazirX, an Indian cryptocurrency exchange, has launched an INR – USD Tether [USDT] pairing available for trading. This comes in the light of the ban on cryptocurrencies in India by the Reserve Bank of India.

The exchange also added a peer-to-peer [P2P] transfer feature for its users in order to circumvent the ban, as only banks are restricted from transacting with cryptocurrency exchange platforms. A peer-to-peer solution allows for the direct transfer of funds between the buyer and seller.

WazirX has implemented an escrow system that ensures security for the user. In an interview with AMBCrypto, Nischal Shetty, the CEO of WazirX, said:

“Trust is ensured through our escrow system. There is no room for fraud in the P2P system, as we escrow the crypto and the money. If the seller does not deliver, your money will be safe. If the buyer does not deliver, your crypto will stay with you.”

An escrow is an arrangement between three parties, wherein a third party, in this case, WazirX, receives and disburses money for the primary transacting parties, who are the buyers and sellers.

By implementing an escrow for peer-to-peer transactions, the funds of both the buyer and seller are held for safekeeping by WazirX until the transaction is confirmed from both the sides. This removes the risk associated with legacy P2P systems, such as over-the-counter trading solutions.

The USDT pair was added for stability, said Shetty. With the volatile prices in the P2P market, a stablecoin is required to ensure that market movement does not influence buying and selling prices negatively. This, along with the reduction of fraud using the P2P system were two major factors in the introduction of these features.

In their official post on the matter, WazirX stated:

“While building WazirX P2P, we realized that since crypto price fluctuations are beyond our control, we needed to bring in a stable coin. Since we wanted to add the stable coin with the highest liquidity in the global market, we’ve decided to go with Tether (USDT) to use in WazirX P2P.”

The INR/USDT pair will allow Indian traders to bring liquidity to the market, while also increasing the available supply of the token. This, coupled with the P2P system implemented by the exchange, may bring either the next wave in Indian cryptocurrency exchanges or a stopgap solution for the ban imposed by the RBI.

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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.


SEC’s harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson




SEC's harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson
Source: Pixabay

Circle-acquired Poloniex, one of the leading cryptocurrency exchanges in the world, announced the geofencing of nine assets on its platform recently. The reason revealed by them was the uncertain regulatory climate in the US, leading them to take a cautionary step fearing the Securities and Exchange Commission’s [SEC] retribution.

Fred Wilson, the co-founder of Union Square Ventures, had recently voiced his opinion that the regulatory body’s ruling to delist coins in the US crypto exchanges was very damaging. He believed that hostile policies would eventually drive away innovation from Silicon Valley, which is the “global epicenter of tech” to Asian countries. He tweeted,

“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause”

Citing Coinbase as an example, Wilson stated that the “most trusted/compliant/secure/safe” exchanges were based in the US. So, according to him, driving trading or liquidity to Asia is “detrimental to safety and security”.

Preston Byrne attorney at Byrne & Storm, PC responded to the above tweet stating that “alleged misconduct” in Asia would be harmful to the entire crypto-space. He emphasized that the major threat to Bitcoin adoption was the “bad actors” who need to be identified and eliminated.

Calling for the need to monitor trading regions and markets, Byrne posted,

“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.”

Ari David Paul, the founder of BlockTower Capital, also reacted to the post,

“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”

Responding to the above tweet, Byrne said that $3 billion of Tether [USDT] was what kept Binance and Finex “afloat” and contributed significant volumes and were currently under the heavy check by State of New York. He also added that the aforementioned platforms were a “hair’s breadth away” from an investigation regarding fraud.

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