The cryptocurrency exchanges in India are gaining back their lost glory. Ever since the country’s Supreme Court lifted a two-year-old banking ban on the crypto players in March this year, the segment has been witnessing a lot of action from the entry of new players to relaunch of old platforms to surge in investor sentiment. Besides, volatility in the global capital markets following the novel Covid19 pandemic is also helping the crypto players as investors are finding Bitcoins and other virtual coins as a “safe haven.”
WazirX, a leading P2P trading platform, has witnessed a 470% increase in its daily volume in the last 30 days, even as equity markets tanked to touch the lower circuit wiping out wealth worth trillions of dollars globally.
Nischal Shetty, Founder, WazirX, told IBS Intelligence that cryptos witnessed a sharp decline in prices as a kneejerk reaction to the outbreak of Coronavirus. Still, the market has become a lot more stable compared to traditional equity markets in the last week.
“In the past 30 days, WazirX daily volume has gone up by 473%. Even though crypto is showing signs of stability, and more investors are entering crypto in this financial turmoil right now, it’s still too early to say anything. We will need to wait and watch for the next few weeks to understand how crypto markets handle their first-ever exposure to the global financial crisis,” Shetty said. He further added that the Supreme Court’s decision to strike down the banking ban on crypto exchanges has helped boost the trust and sentiment into the sector.
India’s banking regulator the Reserve Bank of India (RBI) had, in 2018 April, had issued a directive to all regulated banking and financial services entities to immediately stop any kind of banking/financial transactions with the crypto players. Over a dozen active companies went out of business, and a few pivoted. WazirX was founded post the banking ban…