Global leading crypto exchanges are exploring ways to enter India despite the regulatory uncertainty in-country, reported Reuters. The exchanges include Kraken, Bitfinex, and Kucoin. The government in New Delhi introducing a law over cryptocurrencies that could ban cryptocurrencies.
The Potential ban says it would stifle the economic power of a tech-savvy, young nation of 1.35 million people. There is no official data, but industry analysts estimate that 15 million crypto investors in India holding are 100 billion rupees ($1.37bn).
According to sources, these exchanges include Kraken, Bitfinex, and Kucoin. One source directly involved with an exchange said, “These companies have already begun talks to understand the Indian market and the entry points better”.
Bitfinex declined to comment, while Kraken and Kucoin did not respond to an email seeking comment. While one exchange has already started due diligence for an Indian firm that it’s considering acquiring. The other two are still weighing their options. They are thinking about whether to set up their own subsidiaries within a country or to buy a local firm.
CoinMarketCap ranks all three exchanges in the top ten around the world, based on their traffic, liquidity and trustworthiness.
“The Indian market is huge and it is only starting to grow. If there were more policy certainty by now Indian consumers would have been spoilt for choice in term of exchange because everyone wants to be here,” said Kumar Gaurav, founder of digital bank Cashaa.
The increasing popularity of cryptocurrencies is attracting these crypto exchanges into exploring ways to enter India. India has no rules specifically for cryptocurrency exchange wishing to set up in the country. They can register as a tech company to obtain easy entry.
In 2019, Binance acquired WazrirX, an Indian cryptocurrency startup. It has allowed users to buy and sell crypto with rupees on the Binance fiat Gateway. U.S.-based exchange Coinbase has also announced a plan for back-office in India.
In 2019, Binance acquired WazrirX, an Indian cryptocurrency startup. It has allowed users to buy and sell crypto with rupees on the Binance fiat Gateway. U.S.-based exchange Coinbase has also announced a plan for back-office in India.
Indias Regulation on Crypto Exchanges
The Indian government was set to present a bill to parliament by March that proposed a ban on cryptocurrencies. But the government has held it back, and conflicting statements since have fueled uncertainty over the bill’s fate.
Also read: Indian Banks Send Advisories To Customer Not Transact In Cryptocurrency
The RBI is looking at launching its own digital currency, but government Shaktikanta Das in February described those plans as a “work in progress”. Also in March finance minister said to have an open window for experiments in the cryptocurrency space.
India has no rules specifically for cryptocurrency exchange wishing to set up in the country. They can register as tech companies to obtain easy entry.
