India is on its way to become one of the fastest-growing markets for cryptocurrency-related businesses. The second-largest country by population started its journey in the crypto sector with the Supreme court of India lifting the ban on cryptocurrencies, imposed by the Reserve Bank of India (RBI).
RBI banned cryptocurrencies on April 6, 2018, not allowing banks in India to provide financial services for crypto-related businesses. However, quickly after the Supreme Court of India ruling, exchanges and other crypto services saw massive client boost.
“The clarity that the Supreme Court implied on the way we deal with cryptocurrencies led to a substantial increase in both trading volumes and new clients in India,” CoinSwitch CEO Ashish Singhal stated.
Crypto services providers like Cashaa, for example, noted that the company received an 800-percent spike in trading volumes in the 48-hour time window right after the Supreme Court ruling.
“We also discovered an upward spike of 600+ BTC in the first 24 hours after the ban no longer affecting us”, Kumar Gaurav, CEO of Cashaa, stated. Gaurav also noted that despite the court ruling, many crypto traders in India rushed to get involved, fearing the Indian government may impose new restrictions in the crypto sector”, Gaurav added.
As of press time, the Indian crypto market is gaining momentum, further fueled by the crypto sector trying to stabilize amid the global market recession.
Activities on the Indian crypto market further expanded, as the fourth-largest bank in India, Yes Bank, collapsed and ruined the confidence in India’s banking sector. Furthermore, the global market crisis played an enormous role in the strengthening of India’s crypto relationships, as India’s equity index NIFTY 50 made a 23-percent drop in March, causing the Indian rupee to plummet to 77.40 per one U.S. dollar.
Indian investors also gave a helping hand to the crypto industry, as exchanges operate around-the-clock, as opposed to the Indian equity markets, which only work from 9 AM to 3,30 PM local time.
One of the biggest momentum drivers for the Indian crypto sector is India’s Prime Minister Narendra Modi ordered a national lockdown to help stop the spreading of COVID-19. The lockdown Modi announced gave a push to businesses, accepting cryptocurrencies as payment methods. Justin Gillespie, chief executive officer at Titus Investment Advisors, stated that “during the lockdown, BTC may be used for conducting business from home.”
Meanwhile, crypto P2P marketplace Paxful reported 75% of the investors between 18 and 55 are interested in migrating their funds in the crypto sector. Paxful also noted that 78,5% of the survey participants see cryptocurrencies as a preferred way for money transfers.
Paxful’s CEO, Ray Youseff, spoke about how important it is for the crypto sector in India to receive banking support: “Momentum in India’s crypto sector will rise. Even with the previous ban, the crypto community was actively participating in trading and investment."