In recent months, India has been the subject of intense speculation about the future legal status of Bitcoin (BTC) and other cryptocurrencies.

Speculation peaked in February when an anonymous Indian minister told Bloomberg that a nationwide cryptocurrency ban was imminent and that holders would have several months to get rid of the coins and tokens.

Fear then eased slightly when Finance Minister Nirmala Sitraman told CNBC that reports of a complete ban on cryptocurrency were exaggerated, adding that any expected regulation would require a much more “calibrated” approach.

Perhaps it was this big promise that triggered an increase in listings on one of India’s largest cryptocurrency exchanges, WazirX, during the first week of April. WazirX’s communications manager Priyanka Sharma told Cointelegraph that there were more registrations with WazirX in the first six days of April 2021 than in the first six months of last year.

Aheli Raichaudhuri, the company’s general manager, told Cointelegraph that another Indian cryptocurrency exchange, CoinDCX, had doubled in the first quarter of 2021 compared to the last months of 2020.

The pessimism stemming from real concerns about a government ban on cryptocurrencies seems to be combined with optimism generated by events in other parts of the world.

Sharma said that there has been no noticeable adoption of Bitcoin and other cryptocurrencies by major companies such as PayPal, Tesla and MicroStrategy in India, and he also referred to the role that the blockade of COVID-19 has played in the increase in cryptocurrencies. advantage:

“The growth rate is the culmination of the last 12 months of positive movement in Indian cryptocurrencies, from the lifting of a banking ban by the Indian Supreme Court to stopping an epidemic that is making more people aware of cryptocurrencies. This follows positive global news about Tesla entering the market. , MicroStrategy, Square, PayPal and Visa for cryptocurrencies. ”
Data from publicly available plugins show that the number of visits to the WazirX website has increased by 630% in the last six months, and has grown from 500,000 to over 4 million monthly visitors. Sharma said that the fastest influx of new subscriptions came from users in their 20s and 30s, adding that people were confident that regulators would be easy when the cryptocurrency laws were finally passed.

A similar trend has been observed on CoinDCX, which has more than tripled the number of visitors since November 2020. Most of the new subscriptions are also in the 18-34 age group, Raychaudhuri said.

Since the authorities have not yet deployed smoking weapons, Sharma believes that the fear, uncertainty, suspicion or insecurity caused by the ministerial leaks in February has been completely eliminated:

“Finally, the encryption bill has not yet been delivered. Therefore, any RD&D created in February and March 2021 was suppressed as a result. It is also useful that our Minister of Finance stated that India does not ban cryptocurrencies and takes a standardized approach to this sector. ”
Not only Indian cryptocurrency exchanges believe that. Coinbase, a pioneer in cryptocurrency exchange in the United States, recently launched a recruitment campaign in India aimed at creating some IT and engineering services in the country.

Raichaudhuri said that the demand for cryptocurrencies in India has grown throughout the year, especially after the Indian Supreme Court’s decision to lift the cryptocurrency ban imposed by the Bank of India on banking institutions.

Raichaudhuri said: “There are currently over 750,000 investors in India, and over 340 cryptocurrency start-ups will be created from March 2020. In addition, trading volumes have increased by more than March 2020 by more than 500%. ”

WazirX CEO Nishal Shetty recently teamed up with other industry leaders to develop a speculative regulatory framework that they hope lawmakers will take into account.

Source: CoinTelegraph