Despite the regulatory confusion, and a potential ban on cryptocurrency, global crypto-exchanges are planning to enter India. As per a Reuters report, Us.-based Kraken, Hong Kong- based Bitfinex and KuCoin are actively scouting the market, which analysts say would only get bigger if it was given a free rein.
India already has a global crypto-exchange operating, as Binance owns WazirX. The platform has also entered the NFT mania and is selling multiple NFTs every day. Other exchanges are also eyeing the opportunity to enter the Indian market, which has, as per estimates, 15 million investors holding over $1.37 billion in cryptocurrency.
Talks have already begun
As per the report, the above companies have already begun talks to understand the Indian market and the entry points. One source directly involved with an exchange said that it had begun due diligence for an Indian firm it was considering acquiring.
Other than these companies, two other exchanges were in the initial stages of deciding whether to enter India or not. They could either set up their own exchange through a subsidiary or buy an Indian firm.
Cryptocurrency Law in India
There is no law regulating cryptocurrency in India. However, earlier this year there were reports that the government may penalize possession of cryptocurrency. Since then, the government has asked companies and crypto exchanges to disclose crypto related transactions. It was also reported earlier this month that the government may establish a new crypto-regulation panel.
The crypto-industry in India is also trying to bring legitimacy to the business. The Blockchain and Crypto Assets Council (BACC) is setting up a formal board to oversee the implementation of a self-regulatory code of conduct. It will also implement standardised audits, routine disclosures of company information and funding, repeat KYC checks, improved data storage standards as well as reassessment of customer risk profile.
Perhaps global players recognise the opportunity, and understand that any regulation may take years to come up. They would certainly not want to miss out on a young and tech savvy population.