No one would call the life of the cryptocurrency business in India easy. First, they had to deal with a ban from the country’s Reserve Bank, and then they were hit by the COVID-19 pandemic. However, Indian exchanges manage to withstand everything. Especially after the ban was lifted by the Supreme Court.
India hit by COVID-19 but the crypto market remains vibrant
While the COVID-19 outbreak has had devastating impacts on many aspects of the economy, paradoxically, Indian exchanges are flourishing. Major cryptocurrency exchanges within the country including Wazirx, Zebpay etc, reported record volumes. The disease messed up with the functioning of banks, but also locked people up in their homes and added many free hours. Besides, as many people have lost their jobs, they are forced to seek alternative ways of making money.
That is why they spend their lockdown time exploring the cryptocurrency space. First of all, there are many jobs in this area, allowing people to earn money without the necessity of living home. Second, cryptocurrency trading and investment might also become a source of income; everything a person would need is the Internet and at least a smartphone.
Surely, trading also requires knowledge and understanding of market trends. However, lockdown provides people with plenty of time for education. With an additional two weeks of lockdown, it is expected the country would witness a high interest in cryptocurrency trading.
War with RBI goes on
Despite the RBI ban being cancelled by the Supreme Court of India, cryptocurrency exchanges still face difficulties while working with financial institutions such as banks. The thing is that the RBI didn’t provide any clear guidance and framework of dealing with cryptocurrency business. This forced many financial institutions to refuse to work with cryptocurrency-related companies.
Nevertheless, this triumphant ruling in favour of cryptocurrency businesses restored courage in the dealers in the currency and inspired new investors in the industry. To deal with the uncertainty, the biggest cryptocurrency exchanges in the country have forwarded a letter to the RBI to demand clarifications, as coinidol.com, a world blockchain news outlet has reported.
While it is obvious that the RBI is not going to change its hostile attitude to cryptocurrency businesses operating in India, it is also obvious that the businesses are not going to give up that easily. All in all, they have all legal rights to demand clarifications to make their further work compliant with regulatory and tax framework. The Indian cryptocurrency community is united in solidarity to create a conducive environment for crypto traders and investors without government interference.