Crypto Trading Volume in India Dwindled Tenfold
March 30, 2018
World crypto markets are going through slack periods now while cryptocurrency prices falling for weeks in a row already. The off season has made its significant impact on India that used to be considered one of the crypto trading centers.
Toughening regulation and ambiguous policy by the country’s government have affected crypto trading activity in India already, yet the industry’s spokesmen believe, that’s temporary phenomenon.
“The market is very, very dull,” noted co-founder and CEO of bitcoin exchange Unocoin Sathvik Vishwanath.
Cryptocurrency trading volume in India has fallen from the peak of 90% set at the end of 2017. Along with that prices are shrinking either: with over $20,000 cost in the mid-December Bitcoin has dropped now below $7,000.
All this could not but influence investor activity. Just few months ago major crypto exchanges of India saw 200-300 thousands of new coming users registered monthly. Now the figure has declined down to 50,000.
“Apart from Japan, no other country, including India, has clarified its stand on cryptocurrencies. There is fear among people over uncertainty of regulation and that is the reason they are holding back,” says the founder and CEO of another Indian exchange WazirX Nischal Shetty.
Bitcoin and altcoins are not allowed yet not banned completely within the country, but local financial watchdog advised the citizens to keep away from digital currencies. Some major commercial banks of India like State Bank of India, HDFC and Citibank have either banned or persuaded from using their cards for cryptocurrency transactions. The fact has deterred many citizens and puzzled exchange governors.
“We don’t know what is the underlying information that the banks have that they have turned so negative. The regulators had only issued cautionary statements but banks have gone several steps ahead and have just decided that it isn’t good for people,” said Shetty.
The heads of crypto exchanges in India can only hope that the government will clarify the regulation in the industry and announce officially, digital currencies are legal and are not to be banned. So far cryptocurrencies remain in the gray area for the country’s legislation.