A lot of people are talking a lot about crypto trading in India. But the fact is Crypto Trading Volume Rise In India even after the bank crisis and the current COVID-19 lockdown. The main base for increasing crypto trading volume is Mumbai. World’s second-most crowded city in India. Where we can see the crypto trading is at peak amid domestic economic issues and the nationwide lockdown.
Crypto Trading Volume Rise in India
Actually, it started on 4th March, India Lifts Ban On Cryptocurrency. So, The Supreme court abrogated the ban of Cryptocurrency which imposed by RBI (Reserve Bank of India) on 6th April 2018. The order prohibited banks from providing services to entities dealing with cryptocurrencies. Activity on exchanges immediately picked up.
As a consequence, Indian traders had started to trade on crypto. In this context, Fintech Lawyers, a law firm that represents cryptocurrency traders asked the government and RBI to direct banks to allow transactions in crypto. But RBI said it could create a systemic risk to India’s banking system.
The founder and CEO of cryptocurrency exchange CoinSwitch, Ashish Singhal, said, “There has been a considerable increase in trading volumes on exchanges catering to Indian clients due to the clarity offered by the Supreme Court’s ruling.”
Crypto banking services platform Cashaa India noted a spike of 800 percent in trading volumes in the 48 hours following the decision. “The platform also registered a volume of 600+ BTC in the first 24 hours,” said Cashaa CEO Kumar Gaurav.
He also added, “Every trader was looking to take advantage of the time window offered by the Supreme Court’s ruling.” That likely stimulated he initial spike in volumes.
What is the Financial Crisis?
The act on exchanges further improved after Yes Bank. India’s fourth-largest lender collapsed on 6th March. The reason for damaging confidence in the country’s banking system.
Opportunity Knocks! The Yes Bank crisis worked in favor of bitcoin. Boosting Cashaa’s sales at a daily rate of 250 percent to 450 percent. According to data provided by the platform.
Suddenly, traditional markets like equities and bonds panicked in March. As the coronavirus outbreak spread across Europe and in the United States. India’s benchmark equity index NIFTY 50 dropped by 23 percent in March. While the Indian rupee hit a record low of 77.40 per U.S. dollar.
Moreover, India’s Prime Minister Narendra Modi announced a three-week-long nationwide lockdown on March 24 to contain the coronavirus outbreak.
However, the sell-off in traditional markets and the curfew, nothing made jeopardize Indians to stop trading on crypto. “March was one of the best months, doubling the volume from last month,” Singhal added. Even, the Mumbai-based cryptocurrency exchange WazirX has also registered growth amid the coronavirus crisis.
Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.