Crypto exchanges continue business in India amid ban rumors
The new session of the Indian Parliament has begun and it is in this session that the new Digital currency and the crypto related bill would be introduced and so far, the signs are not very rosy for the crypto industry.
As we had already reported, the gist of the new Bill states that it would be a framework for the launch of CBDCs in India and would also seek to ban all ‘private’ cryptocurrencies except for a few for research and development of the crypto and blockchain industry.
Confusion on Private Crypcurrencies
What has confused the industry is the real definition of what a ‘private’ cryptocurrency means and which of the cryptos would be exempted and on what basis. So far, there has not been any clear answer to the same which has only sought to increase the confusion and stress for the companies, platforms, and their users as well and unless and until the Bill is introduced, clarity is unlikely to emerge in this aspect. India is supposed to have one of the largest user bases for the crypto industry and any outright ban, like in China, could hit the crypto prices very hard.
So far, the crypto exchanges in India have held up well after the initial knee-jerk reaction which lasted for less than 24 hours when the prices fell by 20% as compared to the rest of the world. But the prices have since quickly recovered and we have also have been having reports that many new crypto exchanges are opening up their business within India despite all the news about a total ban and it could probably mean that they know something that the rest of the crypto users do not.
New Exchanges Coming up
A Singapore-based crypto exchange called Coinstore recently opened up its office within the country and it is reported that more than 20% of its users are from India which is the reason why the exchange has decided to open an office in the region with the promise of more investments being made into the crypto industry within the country to ramp up the operations and increase the number of resources in the country but the fact that this expansion comes in at a time when the crypto industry in India is in a state of flux is something that has surprised many.