This Country Is Replacing China’s Dominating Position in Asian Cryptocurrency Industry
India, with a population of 1.4 billion, is currently the fastest-growing cryptocurrency market. Over 20 million Indian cryptocurrency holders are waiting for the implementation of regulatory policies in the country.
Due to increasing regulatory uncertainty, the “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”, which originally scheduled to be submitted at the winter meeting of the Indian Parliament in December, has been delayed. The bill proposes to ban all private cryptocurrencies in India. According to reliable sources, the government is still finalizing the details of the legislation and the cabinet has not approved the proposed legislation yet.
The delay in policy formulation has brought a window period for the development of India’s crypto industry. Its huge market demand, cryptoassets scale and the attractiveness of the crypto industry to talents have brought rapid growth to India cryptocurrency market. It is noteworthy that the trading volume from Indian cryptocurrency exchanges accounted for 5% of the total global trading volume starting December 2020.
In addition, the Economic Times statistics show that India has more than 20 million cryptocurrency account holders, the number has surpassed that of Indian stock market. A total of 6 billion rupees have been (equivalent to US$79.14 million) invested in cryptocurrencies. Among the 20 million cryptocurrency holders, the average age of investors is approximately 25, and most investors are between 25 and 34 years old.
A report by Crebaco and Khaitan & Co shows that cryptocurrencies, especially Bitcoin and Ethereum, are becoming expandingly popular in India and speculated India’s crypto industry would be worth 15 billion U.S. dollars.
During the past 10 years, India has beening showing increasingly more interest in cryptocurrencies and many cryptoasset exchanges such as CoinDCX or WazirX catering to the demands. Recently, CoinDCX was valued at US$1.1 billion after financing.
Economists reputed India’s crypto industry is likely to become the center of the crypto industry in Asia under regulatory norms and guidelines different from the arbitrary complete cryptocurrency ban in China. India then, with a population of nearly 1.4 billion, will to replace China’s dominating position in Asia cryptocurrency.
However, the explosive growth of the Indian market and the emerge of related institutions in the crypto industry deeply concerns Indian Financial Division of Supervision and Regulation. The Central Bank of India has been considering cryptocurrency a threat to financial stability and the country’s macroeconomy. Furthermore, this is the fundamental reason why the Indian government has increased its supervision of the encryption industry.
India needs cryptocurrency regulation, which don’t necessarily have to follow the path of China’s total ban. Building on United Kingdom and Singapore’s expertise and experience in cryptocurrency regulation may be an excellent choice for India. In UK and Singapore, though countries cryptocurrencies are different from fiat currencies, they were required to comply with the requirements of their financial regulators.
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