Skip to content

Sign Up

or

Forgot Password?

Don't have an account?

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account?

Global crypto exchanges pour money into India despite regulatory uncertainty

Global crypto exchanges pour money into India despite regulatory uncertainty

Last updated: Aug 11, 2023

India may have a contentious relationship with the crypto space, but investments continue to pour into the country’s digital coin sector.

In 2019, the largest cryptocurrency exchange Binance acquired the Indian crypto exchange platform WazirX. In 2018, India’s largest cryptocurrency exchange, CoinDCX, also secured funding from crypto trading platforms BitMEX and Coinbase, despite the Reserve Bank of India (RBI) ordering financial institutions to cut off their ties with crypto-related businesses.

The trend will likely continue, given that a large chunk of the nation’s population belongs to the demographics of individuals who are more likely to invest in cryptocurrencies. Harish BV, the co-founder of Indian Bitcoin processor Unocoin, told Quartz in an interview that the median age of Indians is between 28 and 29 years.  

“There is an increasing trend of foreign cryptocurrency exchanges investing in Indian cryptocurrency exchanges. It’s because India has a population of 1.39 billion that is predominantly young which is seen as tech-savvy and more adaptable to crypto saving.”

In March 2020, India’s Supreme Court struck down the RBI circular that restricted crypto dealings. Still, the government now considers proposing a new law that will ban cryptocurrencies and fine those who hold and trade digital assets.

If the plan pushes through, cryptocurrency trading, possession, issuance, mining, and transferring will be criminalized in India. 

Huge growth potential for India’s crypto market

Despite the uncertainties surrounding digital assets, millions continue to bet on cryptocurrencies. Experts think that there is a vast untapped market for the crypto space. 

According to GlobalData senior analyst Nicklas Nilsson, exchanges like WazirX estimate that between 7 and 8 million investors in India hold over $1 billion in crypto investments. Industry estimates also peg the potential investor base upwards of 100 million.

Nilsson added that large crypto exchanges such as Coinbase and Binance are betting in the Indian crypto market because of its huge growth potential. He says that these companies have massive cash reserves that they are now using to expand into newer markets.

[binance]

Latest posts

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Last updated: Aug 11, 2023

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.