India to be the Largest Crypto Market?
By RAHUL SATIJA
Chennai, Feb 28: “India has the potential in becoming the largest crypto market in the world,” said Hesham Rehman, Chief Executive Officer of crypto exchange Bitxoxo.
One out of ten bitcoin transactions in the world is from India, even when less than 0.1 percent population is involved Rehman said. “Once regulation comes in, we are expecting minimum one thousand percent sudden increase in Indian market size.”
Bitcoin prices rose more than thirteen-fold in 2017 to $13,800, the most in four years. The exceptional returns attracted even those who consider the crypto market a bubble.
“Three years ago, there were only a few thousands of people who knew and talked about Bitcoin,” said Naveen C T, Vice President for Sales and Business Alliances at crypto exchange Unocoin. “Now the entire country knows what it is.”
The interest in virtual currencies is growing even after Finance Minister Arun Jaitley announced in his Budget speech this year that digital currencies will not be considered legal tender in India. “Some media misinterpreted that government made cryptocurrencies illegal in India,” Rehman said. That is not true. "Gold and silver are illegal tender in India but buying or selling of gold or silver is not illegal."
The rising interest in digital currencies is forcing lawmakers to come up with regulations. Government is deliberating on rules that can prevent the misuse of and promote the growth of the new technology. “I am happy that our government and finance ministry is taking cryptocurrencies seriously,” Rehman said. Policy recommendations are due in March.
India’s richest man Mukesh Ambani’s investment in JioCoin, Reliance Industries Ltd’s venture into virtual currency, will “possibly” have an impact on the regulations that the government comes up with, said Naveen C T. Ambani’s foray into JioCoin is in line with his belief that data is the new oil.
JioCoin could be the push that crypto market in India needs to become the largest in the world. “If JioCoin will be launched, no doubt, it will attract lots of investors,” Rehman said. “It will increase the interest of Indian users toward cryptocurrencies.”