Cryptocurrency has never been looked at through a positive lens by India, and the Asian country has always had a certain sense of animosity towards it. Nevertheless, cryptocurrency exchanges and related firms have continually put their money into India, hoping that things will change in the coming future.
India Is Getting a Lot of Financial Attention
India really set itself up on the “crypto enemies” list back in early 2018 when it was announced that the country was banning all financial institutions and standard banks from doing business with enterprises that delved in blockchain and cryptocurrencies. While trading itself was not banned, the financial companies of India could not provide services, tools or products to any firms delving in digital assets.
This was later deemed unconstitutional in 2020, and many people could not have been happier. They were convinced that the country of India was about to really earn a place on the map as one of the world’s largest and most prevalent crypto-trading havens, and for a while, it sure looked like the nation was heading in that direction.
However, it was later revealed by the country’s parliament that a full crypto ban – trading and all – was being considered, and many analysts could not believe what they were hearing. This was sure to set India behind considering how far certain neighboring regions had come regarding the acceptance of crypto, and yet India seemed to be moving backwards.
Many crypto exchanges now want to do all in their power to keep India-based digital trading platforms alive and have been donating money like crazy to their operations. Harish BV, the co-founder of Unocoin, explained in a recent interview:
There is an increasing trend of foreign cryptocurrency exchanges investing in Indian cryptocurrency exchanges. It is because India has a population of 1.39 billion that is predominantly young, which is seen as tech savvy and more adaptable to crypto saving.
Former finance minister Arun Jaitley explained in a statement three years ago the country’s outlook when it came to crypto:
The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.
Let the Money Flow!
Despite this, Sumit Gupta – CEO and co-founder of the Coin DCX exchange – explained:
We have been receiving investments consistently since our inception three years back. Investors trust us despite the policy uncertainty. They have seen how we as a leading player in the industry have grown, and above all, the Indian market does offer a lucrative proposal for any investor.
India is also a solid market in many ways considering how many people continue to trade despite the constant threats from government entities. Wazir X estimates that anywhere between seven and eight billion people in India hold over $1 billion in crypto investments.