Cryptocurrency exchanges are exploring ways to enter India Banks News:

Global digital currency exchanges are exploring ways to build in India, following market leader Binance, industry sources told Reuters, while the New Delhi government is stifling legislation that could ban passwords.

Opponents of the potential ban say it will stifle the economic power of a young nation of 1.35 billion people. There are no official figures, but industry analysts estimate that there are 15 million cryptocurrencies in India worth more than 100 billion rupees ($ 1.37 billion).

According to four sources, who declined to comment because they did not have the right to comment on private discussions, US-based Kraken, Hong Kong-based Bitfinex and rival KuCoin are actively seeking a market that analysts say would only get bigger. , if it were. free restraint. “These companies have already started negotiations to better understand the Indian market և entry points,” said one source who was directly involved in the exchange, which had begun to work hard for the Indian company it was about to acquire.

According to him, the other two exchanges were in the initial stage of deciding to enter India, in the initial stage of considering their options, which essentially resulted in a choice to start a subsidiary or buy an Indian firm, as Binance did two years ago.

Bitfinex declined to comment, while Kraken և KuCoin did not respond to a request for comment.

All three exchanges are ranked in the top 10 in the world based on the CoinMarketCap data platform based on their traffic, liquidity, and the reliability of their trading volumes.

“The Indian market is huge; it is just starting to grow. If there had been more policy certainty by now, Indian consumers would have been spoiled for choice in terms of exchange because everyone wants to be here,” said digital founder Kumar Gaurav. Bank Cashaa.

Proponents of cryptocurrencies say they will be the most effective way for Indians living abroad to transfer money home.

But the authorities are concerned that rich people, criminals, could hide their wealth in the digital world, and speculative cash flows through digital channels, which are not controlled by India’s strict exchange controls, could destabilize the financial system.

Without rules

Until now, India has not had any rules for exchanging special cryptocurrencies that want to be established in the country. Instead, they could register as technology companies for relatively easy access.

In 2019, Binance acquired WazirX, an Indian cryptocurrency startup that allowed users to buy and sell cryptocurrencies at Binance Fiat Gateway.

Coinbase, based in the United States, has announced plans to set up an office in India.

But the regulatory environment for cryptocurrencies is deteriorating globally, with the Indian government taking more control.

Authorities in China have banned banks from providing cryptocurrency services to online payment and settlement companies.

And the government of India was going to submit a bill to the parliament by March, which proposed to ban cryptocurrencies, to make them illegal to trade. But the government restrained it, and after that, contradictory statements fueled the uncertainty of the bill.

At the same time, major Indian banks have begun to cut ties with cryptocurrency exchange traders amid concerns about the financial stability risks posed by volatile assets amid the Reserve Bank of India.

The RBI plans to launch its own digital currency, but Governor Shaktikanta Das described the plans in February as “ongoing work”.

Despite all the uncertainty in India, some digital currency exchanges clearly believe that it is better to get access than to miss.

“It is clear that the rewards outweigh the perceived risks that lure these global companies to the Indian market,” said Darshan Batijan, CEO of Vauld, a foreign cryptocurrency exchange based in India.

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