Stocks land in your demat a/c... Where are crypto assets parked?

economictimes.indiatimes.com:

Cryptocurrencies, like stocks, can be bought instantly using an app. But there are major differences between the two assets in the investment process. When you click to buy stocks, the broking company, where you have opened a demat account, places an order on your behalf on the BSE or the NSE. The exchanges then find a match and relay transaction details to the depositories — CDSL or NSDL. These depositories process the actual transfer of shares to your demat account in two business days. Once you tap to buy crypto, the exchange, where you have an account, will find a match for you in the market, take delivery of the asset from the seller and then store it on your behalf. To invest in virtual currencies, you need to open an account with a crypto exchange, provide KYC details and load rupees in the platform’s bank account to trade on the bourse using that balance. Cashing out is also an instant process.

Did you Know?

A statue honouring mysterious Bitcoin founder Satoshi Nakamoto was unveiled in a business park near the Danube River in the Hungarian capital Budapest

Unlike stock exchanges, crypto bourses play the role of an exchange, a depository, and a broker. Another key difference is crypto exchanges are unregulated entities.No uniformity among exchangesMany crypto exchanges have come up in India to cater to the demand for these risky assets amid the pandemic-induced low-interest-rate environment. However, these exchanges don’t have a uniform method to source crypto or manage liquidity risks. Bhagaban Behera, CEO and co-founder of social crypto exchange Defy, said that for each order, there is an attempt to find a buyer/seller within the same