Indian exchange CoinRecoil launches with zero withdrawal fees prior to key SC ruling
CoinRecoil, the exchange that first fought against the RBI Circular that prevented banks from interacting with cryptocurrency-related companies, is gearing up for its launch. It allows Indian cryptocurrency enthusiasts to withdraw funds from their portfolio with absolutely zero fees.
The exchange is an initiative of blockchain and cryptocurrency startup known as Kali Digital Ecosystems Pvt. Ltd. This firm is the one that submitted a writ petition to the Supreme Court, thus prompting the industry’s other players to fight against the move.
Earlier this year in April, CoinRecoil had filed a petition against Reserve Bank of India, the Union of India through Secretary, Ministry of Finance and GST Council in Delhi High Court. The petition in question challenged the RBI Circular on the grounds of it violating Article 14 and Article 19(1)(g) under the Indian Constitution.
The cryptocurrency exchange market in India rapidly evolved after the declaration of the circular by the Reserve Bank of India. As banks were legally forbidden to carry out any transactions that involved cryptocurrency-related finance, exchanges were left to figure out methods to circumvent the ban.
Reportedly, most banking partners began withdrawing their support from exchange platforms even before the 3 months prescribed by the RBI finished. This was due to the presence of rumors of a more tougher regulatory stance on the technology.
They began adopting a peer-to-peer model for trading, thus allowing for the transfer of cryptocurrencies and funds between different traders without directly opposing the ban.
Gopal Modi, the Co-founder and Director of CoinRecoil, elaborated upon the presence of TrueUSD on the platform. He stated:
“We have introduced TUSD [TrueUSD], a stable virtual currency backed by the actual USD. With this, users can easily move their position to TUSD in case of extreme volatility. CoinRecoil is the only Indian exchange charging zero withdrawal fees. We charge only fees that are required for the blockchain network.”
The hearing for whether cryptocurrencies will stay in this legal gray area or not will occur later today. This comes after the SC postponed the hearings twice, thus leaving regulatory clarity in a case of limbo.
Rupesh Panchal, the Director of CoinRecoil, stated:
“CoinRecoil is ready with the technical framework to launch Fiat-to-Crypto platform once necessary regulatory approvals are in place. Although we would like to expand our presence overseas, India will remain a key market for our business operations. We are aware of the challenges that cryptocurrencies market space faces, but we are hopeful of getting clarity from regulators, government and policy makers.”
Kunal Barchha, the Co-founder and Director at the exchange, stated:
“We have launched Beta Version of our platform, whereby users can get virtual balance of every listed coin, to test our platform…starting with 14 crypto assets, we plan to increase the number of crypto assets to 50 by October 2018. Once everything is stable – on technical as well as regulatory front, we will launch our full-fledge product, which is already with us.”
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