News about a reintroduction on the ban of cryptocurrencies has no deterred local crypto companies from expanding their operations
Despite speculations that a ban on cryptocurrency will be reintroduced, cryptocurrency startups continue to expand and launch products in India.
Recently, India’s Ministry of Finance floated a government bill for inter-ministerial consultations that could bring back the ban on virtual currencies.
The crypto market has gathered significant momentum since March, when the Supreme Court lifted the Reserve Bank of India’s (RBI) controversial ban on the trade of cryptocurrencies. Crypto enthusiasts and founders of crypto startups are optimistic about the future of digital currencies in India, and believe that another ban is highly unlikely.
“I don’t think there is anything to worry about as of now. The news article is based on a note which isn’t clear on whether the finance ministry intends to work upon the old draconian crypto bill or whether they plan to work on bringing a new bill,” Nischal Shetty, Chief Executive Officer (CEO) of WazirX, explained.
“Banning is not a solution and I do not believe India will go for a sub-optimal solution here. India has been progressing in the right direction when it comes to technology. I am optimistic we will follow the footsteps of developed countries that have accepted crypto and introduced positive regulations,” he added.
WazirX is a cryptocurrency exchange based in Mumbai. The company was launched in 2018 and has over 400,000 registered users.
Earlier this week, crypto exchange CoinDCX launched the DCX Learn, a new online platform and subsidiary to provide educational content on cryptocurrency and blockchain technology. The DCX LEarn’s launch occurs after the company’s $3 million Series A funding round from Bain Capital, an American private investment firm, as well as a strategic investment worth an additional $2.4 million from Polychain Capital and Coinbase Ventures.
Co-founder and CEO of CoinDCX, Sumit Gupta, believes that the timing for their new product is strategic, as rumours of the ban circulate.
“We don’t see the recent news on a possible ban as a major concern immediately. With all the confusion around regulations, there is in fact even higher need for people to understand the technology and DCX Learn offers that.” Gupta explained.
Earlier this June, the crypto aggregator CoinSwitch launched an Indian Rupee (INR) crypto exchange mobile application called Kuber exclusively for the Indian market. Coinswitch Kuber gives users the opportunity to buy, sell and trade digital assets with the INR using over 100 cryptocurrencies.
In addition, global peer to peer Bitcoin marketplace Paxful also expanded their operations in India. A survey conducted by the company regarding the potential of cryptocurrencies in India revealed that over 75.8% of respondents said that they relied on digital currencies to transfer money.