Press "Enter" to skip to content

Cryptocurrency India: Despite crackdown, new cryptocurrency exchanges are still coming

0
(0)

India’s central bank has virtually pulled the plug on the country’s cryptocurrency ecosystem by forbidding banks from having any business relationships with exchanges.

The Reserve Bank of India’s (RBI) April order instructed all Indian banks to terminate their businesses with cryptocurrency exchanges by the first week of July, a process that is currently in full swing. This means customers won’t be able to buy or sell digital currencies in exchange for cash on these platforms, which has resulted in trading volumes plummeting. From a peak of 15,000 units per day around the end of 2017, cryptocurrency trading in India has declined to less than 1,000 units currently, according to industry members.

On April 07, just two days after the central bank’s diktat, a new local exchange, CoinDCX, commenced operations, allowing customers to track even their international trades in Indian currency.

Later this year, Singapore-based Alluma is all set to launch its operations in India, with an emphasis on stringent background checks. Also, Ahmedabad- based CoinRecoil, a new Indian exchange, is looking to set up shop over the next few months.

“Whenever a new technology is introduced in the market then it faces criticism and steps are taken to stop its growth; the same thing is happening with virtual currencies,” said Kunal Barchha, director at Kali Digital Eco-Systems, which will launch CoinRecoil.

“Despite the challenges in India due to the regulatory environment, there is a significant potential for growth due to the large number of people and their purchasing power, and so we think it’s a good market,” he added.

__________________________________________________________________

HedgeCulture is the leader in blockchain news and is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. HedgeCulture is an independent operating subsidiary of HedgeCulture Group, which invests in cryptocurrencies and blockchain startups.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *