The Indians are obviously in favor of cryptocurrency. The most exchanged blockchain in India is Bitcoin, the world's biggest virtual currency by market capitalization. Bitcoin accounted for 20% of overall traded volumes at WazirX, one of India's largest cryptocurrency exchanges, ever since the ban on cryptocurrencies was lifted in March.
Cryptocurrency trading volumes in India
In the last six months, the WazirX network has sold Bitcoins worth of $184 million. On CoinDCX, a popular cryptographic exchange, about 78% of Indian users trade Bitcoin since April of this year.
Bitcoin is the flag bearer of cryptocurrencies. Also, it’s more liquid and the less volatile compared to other currencies. Hence, most people come to the exchange to buy bitcoins Nischal Shetty, the CEO of WazirX
Indians who see cryptocurrencies as long-term assets typically buy Bitcoin, while day traders generally choose other, highly fluctuating, virtual currencies.
As the number of cryptocurrencies in India grows, other virtual currencies may also start attracting traders. For example, Ethereum is becoming more common in CoinDCX, claims its co-founder and the CEO, Sumit Gupta, as the second-largest market cap cryptocurrency exchange.
Cryptocurrency ban in India
India aims to enact a new law restricting cryptocurrencies, which would ignore the developing economy with other Asian economies.
The draft will be discussed immediately before its delivery by the Federal Cabinet, according to authors, who demanded that they not be acknowledged, citing guidelines for communicating to the public. It should be considered soon.
India's decision would be important since more Asian countries weigh up virtual currencies' benefits and drawbacks. Rival China, which outlawed original currency and coin sales in 2017, recently permitted Bitcoin to transact as virtual goods, and not as fiat currency. They are already developing a digital currency with their own central bank. Crypto trades are regulated by Singapore and South Korea.
A few months ago we already wrote about the fact that India plans to ban the cryptocurrency. It seems that the case has started and the government is seriously considering this possibility.