- India currently boasts of 15 million to 20 million crypto investors with a total crypto holding of around US $5.33 billion.
- Coinbase, CrossTower and Coinstore have expressed their interest in the Indian crypto market.
- Several Indian domestic exchanges are either owned or have investments from leading global exchanges.
The Indian cryptocurrency market is seeing a massive shift when it comes to entry of foreign exchanges. Several domestic crypto exchanges have cropped up and now seeing the massive potential in the Indian market, leading foreign exchanges like Coinbase are trying to enter the market. CrossTower made its entry to India in September this year.
Market experts believe that India currently boasts of 15 million to 20 million crypto investors with a total crypto holding of around Rs 400 billion (US $5.33 billion). Therefore, these crypto exchanges do have a strong market potential to explore and believe that an early entry could give them the edge over the others.
Now, Singapore-based exchange Coinstore too made its ambition clear with announcement of India office. Coinstore already has a significant number of Indian users, and the company feels that it’s an important market that the company should charter going forward. With its web and app platform, investors could see the company soon opening new offices in Bangalore, New Delhi, and Mumbai.
Though the foreign exchanges didn’t have a direct presence in the Indian market before this, but many domestic exchanges in India are backed by leading crypto exchanges.
The foreign exchanges can expect stiff competition from domestic exchanges such as WazirX, Coinswith Kuber, CoinDCXm and others. Currently, WazirX is the leading exchange in terms of trading volumes and is owned by world’s leading cryptocurrency exchange Binance.
Similarly, Coinswitch Kuber is the only India-based company to have received funding from Silicon Valley-based venture capital firm Andreesen Horowitz. Besides, CoinDCX and CoinSwitch also have investments from global exchange Coinbase.
Will Indian government allow them to prosper?
The steady growth of these crypto startups does indicate that despite Indian government mulling over operations of private cryptocurrencies, it may just allow these exchanges to prosper. This could give the exchanges to chart a framework to work in line with the regulatory norms and rules set by the Narendra Modi government.
The next few months will be crucial for the Indian crypto market environment, but experts are hoping that the government takes a moderate stance and give them the platform for them to operate peacefully.