As the cryptocurrency industry spreads in branches and roots in numerous first-world countries, it has now started making its way into the Indian markets. Although the cryptocurrency industry had been operational in India for many years, it was just recently when it started gaining mainstream success.
For the past three years, the cryptocurrency industry in India was facing a lot of problems and obstacles. As of now, there are more than 5 cryptocurrency exchanges that are operating in India and the number is only going to increase.
Almost all the cryptocurrency exchanges based in India have confirmed that they experienced a surge in their user-base as well as investments in the past couple of years. Similar to other international exchanges, it has been confirmed that the main driver for the surge has been none other than the pandemic.
During the pandemic, there were many people who ended up losing their jobs and many businesses that shut down. To tackle the monetary losses, there were many people and retailers who started investing in cryptocurrencies. This is the reason why cryptocurrency exchanges operating in India have stated that the majority of the users and investments they are getting are from Indian retailers.
Even after all the success and development, there were many cryptocurrency exchanges in India that complained of not getting any support from the Indian Government. Instead, the Indian Government created a lot of obstacles and uncertainties for the crypto-industry in the country.
The past year was completely filled with confusion and ambiguities for the crypto-industry in the country. There were many times when the parliament announced it will be holding a session to discuss the crypto-business in the country. However, the topic around cryptocurrencies in the country was never raised until the end of 2020.
It was towards the end of the year when it was decided by the Indian regulators that cryptocurrencies will be granted trading right in the country. The reason for granting the right to trade cryptocurrencies would allow the country to generate between $750 and $950 million worth of revenue annually.
It was reported by the regulators that annually, more than $5 billion worth of Bitcoin (BTC) and other derivative transactions are being processed by the Indian investors.
The regulators speculated that after legalizing cryptocurrency trading in the country, it will be generating more revenue for the country.
Now the situation has changed drastically for the cryptocurrency industry in the country. There are many cryptocurrency exchanges that have started carrying out funding rounds to generate funds for investing in crypto-services and products.
Just recently, it was CoinDCX that reported that it had conducted successful funding round with the help of international crypto-exchanges. CoinDCX claims to be the largest cryptocurrency in the Indian crypto-market.