How Indian crypto-currency bourses adapting to RBI ban

cryptocurrencies and their underlying technology, the blockchain, have paved the way for many new businesses across the globe.

cryptocurrency exchanges, where trading in bitcoin and other virtual currencies take place, form an integral part of this business economy.

there are numerous issues pertinent to these exchanges that are noteworthy for anyone looking to enter the digital currency space.

circular in April prohibiting banks from offering services to businesses engaged with crypto-currencies has prompted these exchanges to reconsider operations. some of the Indian exchanges are shifting out of the country. many exchanges have begun offering trading of crypto pairs, so that even if accounts are blocked and no rupee can be deposited or withdrawn, trading can still continue.

crypto-currencies are digital in nature, relying on cryptographic encryption to regulate the generation of units of currency and verification of the transfer of funds, operating independently of a central bank.

at its core is the blockchain technology, a distributed database that is immutable and does not rely on third party to verify new entries but on the network of all those who each have the exact public copy of all the records.

despite many advantages, due to the digital nature of crypto-currencies, there are ways that allow hackers to exploit systemic vulnerabilities of these exchanges, and thus even if a crypto-currency like bitcoin itself is secure, exchanges, where it is traded, are prone to cyber-attacks

users’ funds are stored in crypto-currency wallets and digital wallets that allow sending, receiving and storing of virtual coins such as bitcoins.

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