WazirX, which is the largest player in the market today sought to retain volume post the ban by enforcing an escrow system on the ‘crypto-leg’ of a rupee-to-crypto transaction. The exchange would only release cryptocurrency to a buyer once the seller confirmed receipt of the payment in rupees.
In the meantime, industry players challenged the RBI ban in the Supreme Court and a decision in March 2020 overturned the ban. “As soon as the Supreme Court struck down the banking ban, WazirX resumed the instant rupee deposits and withdrawals option. Our number of users has gone by three times since then. Even though peer-to-peer trades continue to happen on WazirX, the demand for instant rupee deposits and withdrawals is way higher,” said Nishal Shetty, founder, Wazir X.