Binance Blocks Cash Payments for P2P Crypto Trades in India

cryptonews.com:

Binance has terminated cash payments for peer-to-peer (P2P) cryptocurrency trades in India, a move intended to bolster compliance and align with regulatory standards.

This decision comes as the exchange seeks to establish greater legitimacy in the Indian market despite the previous flexibility that allowed traders to settle transactions using physical cash or bank deposits.

Binance, a leading global cryptocurrency exchange, has stopped allowing cash payments in India for peer-to-peer (P2P) cryptocurrency trades. This change affects a popular method where traders could settle transactions using physical cash or by depositing cash into a bank account, alongside standard payment options such as online fund transfers and UPI.

Previously, local traders could leverage Binance’s escrow service to post buy or sell orders on the platform and complete transactions using various payment methods, including cash. This flexibility was particularly advantageous for circumventing the high taxes imposed by New Delhi on crypto trades.

The decision to end the cash payment option is part of Binance’s broader strategy to enhance compliance and gain legitimacy in the Indian market, which has seen increasing regulatory scrutiny.

While non-cash rupee payment methods remain available for P2P trades, removing the cash option represents a significant shift in Binance’s operational approach in India.

Interestingly, Binance continues to allow cash payments for P2P trades in UAE dirhams (AED). This enables the exchange to match buyers and sellers in Dubai and facilitate payment settlements in AED cash.

In Dubai, where the interchangeability of cash and cryptocurrencies is more fluid, the city is positioning itself as a burgeoning