This is purely a hypothetical question - Can Indian Government Ban P2P trading? Is it possible technically? If they do, then how they can enforce the ban?
What is P2P Trading?
P2P trading is a type of cryptocurrency exchange method that allows traders to trade directly with one another without the need for a centralized third party to facilitate the transactions. So with P2P trading, crypto investors trade directly with one another without the need for a crypto exchange for the transactions.
Binance P2P platform has been around for three years now and is one of the most popular P2P platform in India.
How P2P Works on Crypto P2P Platforms?
Step 1 - Place an Order - Buyer place a P2P order for the desired cryptocurrency, the crypto asset (of the seller) will be escrowed by Crypto P2P Platform automatically.
Step 2 - Send money to the seller via the suggested payment methods namely UPI, Bank Transfer, etc. Complete the fiat transaction and click "Transferred" or "Notify seller" on Crypto P2P Platform.
Step 3 - Get your Crypto - Once the seller confirms receipt of money, the escrowed crypto will be released to you by the Crypto P2P Platform.
Mushrooming of Crypto P2P Platforms
There has been a large increase in the number of Crypto P2P Platforms. The number of Crypto P2P Platforms has mushroomed in last one year due to popularity of P2P transactions.
Why would Indian Government Ban P2P trading?
One Reason - Violation of TDS Rules
Is it possible technically?
If they did Ban it, can they can enforce the ban?