In the present time, the Indian Regulatory clampdown on several kinds of cryptocurrency businesses put some force in the exchange startup Unocoin to make experiments in stablecoin and ATMs to continue getting the fiat deposits from customers.
Sunny Ray, the co-founder at Unocoin told about his company that it has not been able to transact via the regular channels of banking with the 1.3 million customers for several months after the Reserve Bank of India banned the banks from working with crypto or crypto companies in April.
In recent years, Unocoin also set up an ATM in the Bangalore mall where clients can easily deposit their money into the exchange accounts without taking the help of credit card or bank. It is said by the researchers that the Unocoins is going to be set up a few more ATMs in Delhi and Mumbai in the coming few weeks.
Along with this, some users are quickly transferring their rupees in the ethereal based TrueUSD token which is supported by the Unocoin. For the customers who live outside from the Banglore will get the best possible support for stablecoin which may provide an indirect way to hold more value in their accounts without quiet much volatility. However, the transaction volume is still less than a few thousand TUSD per day. After that, the Ray said that “We never even consider the stablecoin before. That is more just like a stop-gap solution. It is not like the actual and final solution for everything.”
According to the study of Kashif Raza who is the co-founder of Crypto Kanoon, an Indian regulatory news startup and told that “The crypto community is suffering from this ban as there has been an instance where the bank accounts of individuals have been closed who were found to be dealing in cryptocurrencies.”
The crackdown has been severe that Raza explained it has created a misconception in India that bitcoin itself is outlawed, even though the ban is only imposed on the entities governed by the RBI.
The silver lining
There is nothing that can imply that Indian crypto startups are now operating in a black market. In addition to this, the Raza told that the exchange accounts can sometimes require more about knowing your customer (KYC) paperwork than opening a new banking account. Many people see this ban as the inconvenient pause, not as the death knell.
In a report, Raza said that “Given the fact that the Indian government is quite hopeful to be in favor of the technology behind virtual currencies, the crypto community is quietly hopeful that (banking crypto companies) will be regulated in the future.”
The ATM of Unocoin allows for regulation conscious investors such as Karthik Reddy of Blume Venture. Who also passed the new ATMs in the press statement as it helps to keep the detailed records of their crypto portfolios in complete while still depositing fiat currency as needed. Ray include that “innovation is being squashed in a country where one in seven people live.”