It appears that India’s decision to withdraw the crypto bill from the legislative agenda for 2021 is having a negative impact on new signups. In this perspective, it’s worth noting that, up until November, investor registrations on crypto platforms were apparently expanding at a 10% month-over-month rate. According to local media, the bill’s deferral to next year resulted in a 15-25 percent drop in new sign-ups in December.
So, Crypto exchange WazirX’s spokesperson explains to ET
“Signups in December were lower than what we saw in November, but it’s higher than what we saw six months ago.”
Some of the country’s largest exchanges, according to the research, have recruited 40,000 to 50,000 customers per day since the beginning of the year. December, on the other hand, saw less than half of those additions.
Meanwhile, it’s worth mentioning that India’s crypto platforms have been dealing with a lot of uncertainty for a long time. The law was primarily supposed to provide clarity on promotional restrictions, something the sector had hoped for.
Now that the law has been postponed, bitcoin companies are reportedly reducing their advertising. Then, and other promotional efforts, which has a direct impact on new signups.
BuyUcoin, an Indian exchange, has a daily sign-up rate of 8,000 to 10,000 people. However, the number has now dropped below 4,000. According to Shivam Thakral, CEO of BuyUcoin,
“In December, we received around 1,15,170 signups. Compared to other bearish cycles, the registrations in December have still shown a 28.7% jump in the user base.”
This basically suggests that the drop isn’t all bad in the grand scheme of things. With an estimated 15 million crypto investors, India is also a booming industry in the crypto fundraising space. According to ET and Tracxn’s combined data, crypto fundraising and blockchain investments in India for 2021. Which totals $638 million across 48 funding rounds.
Previously, Chainalysis discovered that between July 2020 and June 2021, India’s crypto market expanded by 641 percent.
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