Regulation Authorities in India is forcing exchange startup like Unocoin to experiment with stablecoins and ATMs in order to continue receiving deposits from consumers.
Sunny Ray, co-founder at Unocoin, said that the company, for several months, failed to transact with 1.3 million customers through regular banking channels, after the RBI banned the banks to work with crypto companies in April.
Recently, Unocoin established an ATM in Bangalore mall where consumers can deposit money in Rupees for the exchange accounts without using any bank or credit card. Unocoin is planning to open more such ATM in Mumbai and Delhi in the coming weeks.
Since August, some of the users are transferring their money to the ethereum-based TrueUSD token which is supported by Unocoin and later using the money to purchase BTC whenever the price feels right. TrueUSD is designed to maintain equality with the USD.
Ray said that as the company investigating the way to scale complaint ATMs, team is planning to expand in Malta and Canada to assure that in case operating become difficult, they have other options to list new stablecoins.
There’s a legal battle going on in the court to alter the ban. Till date, it hasn’t yielded any outcome. The ban has a major impact on the crypto space in India which includes shutting down Zebpay – one of the most popular exchange startup in India.
Kashif Raza, the co-founder of Crypto Kanoon – platform for Blockchain Regulatory News and Analysis, said that the crypto market has suffered a lot from the ban. The bank accounts of many people which are linked with cryptocurrencies have been closed.
Unocoin’s ATM allows investors like Kartik Reddy to keep records of their range of crypto investments. Kartik Reddy, Investor at Blume Ventures, praised the idea of establishing new ATMs.
The ban has built up a strong peer-to-peer trading. This year in September, major P2P exchanges like WazirX, have reached per day trading volume of 50 BTC. While LocalBitcoins has reached Indian weekly trading volume of around $1.5 million three times since August.