India doesn’t have a clear regulatory structure for crypto. All its exchanges have already been suffering because banks are refusing to work with them. But still, foreign crypto exchanges are investing heavily in India. First, we have Binance that acquired the largest crypto exchange in India, WazirX. Then recently CEO of CoinDCX announced that Coinbase and BitMEX have invested in them.
He tweeted, “Happy to see growth of Coinbase, whose investment arm had invested in CoinDCX, carrying forward the shared vision of making crypto accessible to everyone.” So, the question has to be asked what is making these big companies invest in a place where even the regulatory structure isn’t clear.
Growth of crypto in India
India is the 2nd largest country globally by population after China. And with such a huge customer base, it is obvious that the companies outside India don’t want to miss on the action inside. Even though there are no clear regulatory laws in India, the NPCI has said they won’t ban crypto. So, sooner or later, we could expect proper laws from the government to regulate the new assets.
We @WazirXIndia got more customer signups in the first 6 days of April 2021 than the entire first 6 months of 2020.
We’re learning and scaling. We’ll continue to work hard on ensuring our users have the best experience ✌️#IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) April 7, 2021
In India, the total investment and user base might not be as big as that of the US. But the growth rate here is much much higher than in any other country. Just taking a tweet of the CEO of WazirX Nischal Shetty into account explains that properly. He said that they received as many signups in the first 6 days of April 2021 as they did in the 1st 6 months of 2020. If this figure doesn’t justify the growth and adoption rate, I don’t know what will. At present, there are over 1.5 crore investors in India, with over Rs 15,000 crore invested in various assets.
At this point, even though banks are not working with exchanges, exchnages are figuring out some method to enable crypto deposits. And when there are no options, users are also using the p2p option, which is how crypto usage was actually intended to be.
Rising revenue of foreign exchanges
Like India, even other countries, especially the US, is seeing increased adoption of crypto recently. And this means that they have a lot and a lot of cash. This is why they are looking at investment opportunities in different countries, and India is one of the best. So, betting on the Indian market, even though it is risky, is a high risk to reward card many foreign companies are playing. And if the government actually released some laws that help regulate crypto, this investment spree is just going to increase from here on.
What are your thoughts on the rising investment of foreign crypto exchanges in Indian markets? And do you think the government will support this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.