File Photo: Cryptocurrency representations including Bitcoin, Dash, Ethereum, Ripple and Litecoin can be found in this illustrated photo taken on June 2, 2021.Reuters / Floren Slow / Illustration / File Photo
June 10, 2021
(This June 9th story modifies the third paragraph to show Bitfinex based in the British Virgin Islands instead of Hong Kong.)
By Nupur Anand
Mumbai (Reuters) -Global digital currency exchanges are following in the footsteps of market leader Binance, looking for ways to set up in India, industry sources told Reuters.
Opponents of the ban say it will squeeze the economic power of a tech-savvy young country with a population of 1.35 billion. Although no official data are available, industry analysts say Rupees 100 billion in India. We believe there are 15 million tech investors with over $ 1.37 billion).
US-based Kraken, British Virgin Islands-based Bitfinex, and rival KuCoin actively scout the market, according to four sources not identified because they are not authorized to comment on personal discussions. And the analysts were given free control.
“These companies have already begun negotiations to better understand the Indian market and entry points,” said one source directly involved in the exchange that launched due diligence for Indian companies considering acquisitions. The source said.
According to him, the other two exchanges are in the early stages of deciding whether to enter India and considering options, effectively establishing a subsidiary or India as Binance, the world’s largest exchange. I end up with the choice of buying a company in India, two years ago.
Bitfinex declined to comment, but Kraken and Kucoin did not respond to the email asking for comment.
All three exchanges are ranked among the top 10 in the world by the data platform CoinMarketCap based on reported volume traffic, liquidity, and reliability.
Kumar Gauraf, the founder of Digital, said: Bank Cashaa.
Cryptocurrency proponents say it is the most cost-effective way for foreign Indians to send money back to their country.
But authorities are concerned that wealthy people and criminals could hide their wealth in the digital world.
Invoice delay, fate unknown
So far, India has no special rules regarding cryptocurrency exchanges that it wants to establish in India. Instead, they can register themselves as a high-tech company to get a relatively easy entry route.
In 2019, Binance acquired Indian crypto startup WazirX, allowing users to buy and sell crypto at the Binance Fiat Gateway for rupees.
Coinbase, a US-based exchange, has announced plans to set up a back office in India.
However, as the regulatory environment for cryptocurrencies deteriorates globally, Indian authorities are scrutinizing more closely.
In China, authorities have banned banks and online payment companies from providing services related to cryptocurrency trading.
And the Indian government plans to submit a bill to parliament by March, proposing to ban cryptocurrencies and make trading and retention illegal. However, the government has withheld it and has since since. Conflicting statements have given uncertainty about the whereabouts of the bill.
Meanwhile, the Reserve Bank of India is beginning to break ties with crypto exchanges and traders amid concerns about financial stability risks posed by volatile assets.
The RBI is considering launching its own digital currency, but in February Governor Shaktikanta Das described these plans as “work in progress.”
Despite all the uncertainties about what India will ultimately do, some crypto exchanges clearly believe it is better to enter than to miss it.
Darshan Bathija, CEO of Vauld, a foreign cryptocurrency exchange based in India, said:
(Report by Nupur Anand; edited by Simon Cameron-Moore)
Source link Major crypto exchanges scout for entry into India despite possible bans