As the saying goes – Bitcoin will do to banks what email did to the postal industry
This past week saw 2 very important developments which will have huge positive impact for Crypto ecosystem in India –
- Reserve Bank of India (RBI) finally clarified its stance on financial services for cryptocurrency-related businesses. In response to a Right to Information (RTI) request, the RBI clarified that there are no restrictions on banks preventing them from providing an account to cryptocurrency companies or traders. In early March, the Supreme Court lifted RBI’s ban on financial entities from dealing with crypto-related customers. But some banks were still refusing crypto services to businesses, since ruling on the ban did not include an order for the RBI to notify banks and request their compliance with the court order. These concerns have finally been laid to rest with this clarification from RBI. This opens the crypto market to 1.35 billion people (1/6th of worlds population) and you can imagine the potential opportunities it will open up.
- India’s largest Cryptocurrency exchange CoinDCX raised Rs 18.98 crore (about $2.5 million) in a follow-on investment round led by Polychain Capital and Coinbase Ventures, the investment arm of American cryptocurrency major Coinbase. Coinbase is the second biggest Crytpo exchange in the world in terms of liquidity.This after Binance – the biggest Cryptocurrency exchange in world acquired India’s Leading Crypto exchange WazirX in November, 2019.
Coinbase Inc. investing in CoinDCX sets up a perfect match between Binance and Coinbase to get a larger share of India’s crypto pie and goes to show the importance huge Indian Crypto market presents for global players.
So friends, action in Indian Crypto space is just heating up and with turbulent times ahead for global economy, we see very interesting times ahead in this area.