Author: Jagdish Kumar, India
In India, where the Reserve Bank of India (RBI) has asked it citizens to stay away from virtual and cryptocurrencies citing illegitimate, various cryptocurrency exchanges are still opening.
On 5 April 2018, the RBI ordered all the banks in the country to terminate with cryptocurrency exchanges by the first week of July 2018.
However afte this, on 7 April 2018, a new local exchange, CoinDCX was launched, which allowed customers to track even their international trades in Indian currency.
According to the RBI circular, trading in cryptocurrencies units plumped to 1000 from 15000 units sold per day till the end of 2017.
The move of RBI was said to bring end to buying, selling and trading to virtual/crypto currencies in India, but that did not happen.
The new exchanges that are coming are citing that they are following Indian laws, one such is Ahmedabad based CoinRecoil, a new Indian exchange, is looking to set up shop over the next few months.
This is nothing new, whenever a new technology is introduced in the market they face criticism and steps are taken to stop its growth by established market leaders, the same thing is happening with virtual currencies, Kunal Barchha, director at Kali Digital Eco-Systems, which will launch CoinRecoil said.
RBI has only cautioned the citizens not to invest in virtual currencies for getting higher returns and till today crypto currency is not banned in India.
RBI is even looking to launch its own cryptocurrency as the committee set up by India’s finance ministry is expected to table recommendations for virtual currency regulations within this financial year.
The new exchanges that are coming in India do believe that despite challenges, there is a significant potential for growth due to the large number of people and their purchasing power.
Later this year, Singapore-based Alluma is all set to launch its operations in India, with an emphasis on stringent background checks.
Koinex and Zebpay, which is already operating in India have now started focusing on verification of users from address and income proof being verified, before the user start using their platform.
Apart from India, CoinRecoil is also looking to enter, Singapore, Estonia, Australia, Canada, Thailand, and Dubai are some of the places.
The company has also filed a petition in Delhi high Court against the order of RBI and taking a legal recourse.