Global digital currency exchanges are exploring ways to settle in India, following in the footsteps of market leader Binance, industry sources told Reuters, while the New Delhi government is reluctant to introduce a law that could ban cryptocurrencies. Opponents of the potential ban say it would stifle the economic power of a tech-savvy young country of 1.35 billion people.
There is no official data, but industry analysts estimate that there are 15 million crypto investors in India with more than 100 billion rupees ($ 1.37 billion).
According to four sources, who declined to be identified because they were not authorized to comment on the private talks, US firm Kraken, Hong Kong-based Bitfinex and rival KuCoin are actively exploring the market, which analysts say are not. would grow that had carte blanche.
“These companies have already started talks to better understand the Indian market and entry points,” said a source directly involved in a stock exchange that had started due diligence for an Indian company it was considering acquiring.
The other two exchanges, he said, were in the early stages of deciding to enter India and assess their options, which in effect comes down to choosing between setting up a subsidiary or buying from an Indian company, like Binance, the world’s largest stock exchange, did two years ago.
Bitfinex declined to comment, while Kraken and KuCoin did not respond to an email seeking comment. All three exchanges are ranked in the top ten in the world by the CoinMarketCap data platform, based on their traffic, liquidity, and the reliability of their reported trading volumes. now Indian consumers would have been spoiled for choice in terms of trading, because everyone wants to be here, “said Kumar Gaurav, founder of digital bank Cashaa.
Supporters of cryptocurrencies say it would be the most cost-effective way for Indians abroad to send funds home. But authorities fear that the rich and the criminals are hiding their wealth in the digital world, and that speculative flows of funds through digital channels, not governed by India’s strict currency controls, could destabilize the financial system.