In India, Decision of Cryptocurrency related case is currently going on in the Indian court, The Indian government has banned any new methods related to purchasing cryptocurrency trade. While exchanges have launched peer-to-peer models, a small fraction is resorting to “Dabba trading.”
Banning is not Appropriate
According the report, Dabba trading refers to making trades outside the order books, usually in an illegal setting different to a formal OTC market. This method has increased after the Indian Government crackdown on cryptocurrency business.
Brokers generally accept cash from the investor and buy bitcoin using the foreign trade account they have. The broker pays the difference in cash, when the investor considering to withdraw the cash. The broker selling their bitcoin in foreign trade account and earning money.
According to the report, the Dabba Brokers are operating their business from these places in Indian cities such as Surat, Kolkata, Ahmedabad, Mumbai these cities have been recognized for their financial importance and affluent industries.
It has been reported in the report that brokers are using telegram to negotiate with traders rather than using Facebook or WhatsApp, probably to take advantage of encryption services and protect identity.
Some brokers are avoiding the using endangering networks, they have international back account and conduct cross-border transfers. The trades are immobile daily but the reports show that some settlements could take a weeks. While the Indian government has a maximum annual remittance limit of $250,000, brokers circumvent this stoppage and continue their business in cash or cheque.