- China, the most populous country, however, has banned anything and everything related to crypto and digital currency.
- This brings the second-most populous country of the world to the limelight - India!
- Global leaders in cryptocurrency exchange like Binance saw a 4X increase in the Indian traffic to their crypto exchange platforms.
Cryptocurrency is surely a technological marvel, but it has been recognized more as a means of a treatable asset than being used as a means of payment. True to the words that one man’s food might be another man’s poison, the volatility of cryptocurrency has made cryptocurrency exchanges more lucrative and relevant.
Cryptocurrency exchange software is bound to be one of the most profitable business ideas. It goes in line with casinos-irrespective of the trader making money or not, and the cryptocurrency exchange always makes a profit out of every transaction carried.
The Indian Market:
It is quite evident that the magnitude of profit that exchange can earn depends on the number of users participating in the exchange. Given this fact, some of the most populous countries would be the most lucrative targets for any cryptocurrency exchange business. China, the most populous country, however, has banned anything and everything related to crypto and digital currency. This brings the second-most populous country of the world to the limelight – India!
India has always been a hub for cryptocurrency exchange development. There are quite a lot of established blockchain development companies that specialize not only in building crypto exchanges from scratch but also customizing a white label cryptocurrency exchange.
The Legal Status & Status Quo
Until recently, India was quite hostile to cryptocurrency exchanges. In March 2020, however, the Supreme Court of India struck down a rule imposed by the Reserve Bank of India in 2013. The rule imposed by the RBI stated that cryptocurrency was illegal. However, quoting the fundamental rights provided by the Constitution of India, the Internet and Mobile Association of India [IAMAI] appealed against the reserve bank decision, and the Supreme Court ruled in favor of the petitioner. This opened up a wide plethora of opportunities, not just for crypto traders from India but also for aspiring entrepreneurs who would like to explore an avenue of profit in the crypto space.
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Why Was It So?
Before we jump into the discussion on the new opportunities, it is important to introspect why those rulings against cryptocurrencies were in place. India might be one of the world’s largest and most dominating economies, but it cannot be denied that most of its economy belongs to the unorganized sector. The businesses might not have complete balance sheets and records of taxation. Until the demonetization in November 2016, India was largely a cash-driven economy. Although the move has considerably brought down cash transactions and has given a rocket boost to digital transactions, the ‘unorganized’ factor still remains.
As we all know, cryptocurrency exists outside of the control of any centralized body. In fact, the concept of decentralization is right there in the DNA of the technology that backs cryptocurrency – the blockchain. In 2013, the primary cloak that cryptocurrency sported was as an alternative currency. However, today, owing to the volatility factor, cryptocurrency has primarily become an instrument of trade and not transaction.
This change, however, was not noticed by the RBI. Even if they did, repealing that law would only increase the risk of money laundering and even funding terrorist activities, and it could go against the interests and security of India. Therefore, the reserve bank did not bother to change the law that was created in 2013. This put a lot of cryptocurrency trading enthusiasts in a fix because they knew the market, but still, they could not trade the way they wanted.
It All Changed In Q1 2020
The judgment issued by the Supreme Court of India in March 2020 is probably the biggest milestone in India’s tryst with cryptocurrency. This could open up avenues for a lot of crypto trade to happen in India. The numbers and statistics have already painted a picture of hope for cryptocurrency in India.
Global leaders in cryptocurrency exchange like Binance saw a 4X increase in the Indian traffic to their crypto exchange platforms. The participation has also been intense in Indian cryptocurrency exchanges like WazirX.
“If you cannot ban it… Regulate it!” is something that all constitutions, registrations, and penal systems go by. It cannot be an exception for cryptocurrency. We have seen the United States regulate cryptocurrency-related affairs, and it has led to bitcoin being treated as a valid asset by the IRS. Suppose the same procedure is followed in India. In that case, it is quite possible that cryptocurrency will open up new job opportunities and will also position India as a creator of such technological manifestations.
After all, the banking system and finance is always subject to change, and it is just that we have been used to the concept of money in its current sense for a long time. It should be remembered that we did take some time to come out from the barter system, and if we were to look back, it would sound odd to accept that a piece of paper with something printed on it would be so valuable today!
The same is the case with cryptocurrency. And history, as everyone knows, it’s bound to repeat itself. Right now, we are at a juncture when India can either embrace this new technology and be a harbinger for the world to learn from them.
The Indian audience has always been curious about new technology, and once a piece of technology establishes its supremacy, it is difficult to shake it off from those desi minds. Therefore, it is the right time and the ripe time for crypto enthusiasts to explore the Indian market. This would also mean that Indians can now start investing freely in cryptocurrency exchanges.
The presence of white label solutions makes it extremely easy for anyone to launch a crypto exchange. All that is needed is a few elements of customization, aggressive marketing, proper customer support, and of course, legal help to ensure that your business does not violate any legislation of the constantly-evolving and nascent crypto laws.