Several global digital currency exchanges are exploring the ways to set up in India. According to the Reuters report, they are following in the footsteps of Binance, the market leader in the industry. However, the government in New Delhi dithers over introducing a law that could ban cryptocurrencies.
Tech-Savvy Young Nation
Opponents of the ban say that it would stifle the economic power of a tech-savvy young nation of 1.35 billion people. There is no official data, but industry analysts reckon that there are 15 million crypto investors in India who are holding over 100 billion rupees.
Some companies have already begun talks to understand the Indian market and the entry points better. Some other companies in the initial stages of deciding whether to enter India and weighing their options.
They are also considering the choices between setting up a subsidiary or buying an Indian firm as Binance, the world’s biggest exchange, did two years ago.
Kumar Gaurav, the founder of digital Bank Cashaa, said that the Indian market is vast and is only starting to grow. He further said that if there were more policy certainty by now, Indian consumers would have been spoilt for the choice in terms of exchanges as everyone wants to be here.
Proponents of cryptocurrencies say that it would be the most cost-efficient way for Indians abroad to remit the funds home. But the authorities worry about rich people and criminals hiding their wealth in the digital world.
There are chances for the speculative flows of funds through digital channels ungoverned by India’s strict exchange controls. This could destabilize the financial system.