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According to reports, several major global cryptocurrency exchanges are exploring ways to enter the Indian cryptocurrency market. An executive of an encryption company said: “The Indian market is huge and it has only just begun to grow. If there is more policy certainty now, Indian consumers will be spoiled in transactions because everyone wants to come here.”
According to Reuters, global cryptocurrency exchanges are exploring ways to enter the Indian cryptocurrency market. Four sources told the publication that US-based Kraken, Hong Kong-based Bitfinex and competitor Kucoin are actively exploring the Indian crypto market. A source claimed to be directly involved in an exchange that is considering acquiring an Indian crypto company and has begun due diligence on it. Source description:
These companies have begun negotiations to better understand the Indian market and entry points.
The publication stated that the other two exchanges are in the initial stages of deciding whether to enter India and weighing options. This usually boils down to choosing between setting up an Indian subsidiary or acquiring a local company. Coinbase, another US-based cryptocurrency exchange, has announced plans to set up a back office in India.
The publication pointed out that although there is no official data, industry analysts estimate that 15 million cryptocurrency investors in India hold more than 100 billion rupees ($1.37 billion). Kumar Gaurav, founder of the digital bank Cashaa, commented:
The Indian market is huge and it has only just begun to grow. If there is more policy certainty now, Indian consumers will be spoiled for exchange because everyone wants to be here.
At the same time, the Indian government has not yet introduced a cryptocurrency bill. The current bill aims to ban cryptocurrencies, including Bitcoin. However, there are reports that the government is re-evaluating the ban recommendations and is setting up a panel of experts to make new recommendations to regulate the encryption industry.
The Reserve Bank of India (RBI), the central bank, recently clarified its position on cryptocurrencies. The Governor of the Reserve Bank of India said that the central bank still has major concerns. However, the Reserve Bank of India told the bank that its April 2018 notice of prohibiting financial institutions from providing services to crypto companies and traders is no longer valid.
What do you think of global cryptocurrency exchanges that want to enter the Indian cryptocurrency market? Let us know in the comments section below.
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