With China Jettisoning Crypto, India May Make Rich Harvest
The global cryptocurrency market, which has always been pretty volatile, is now poised for a further correction in the wake of a crackdown by the Chinese government on all virtual currencies. The world’s largest cryptocurrency Bitcoin nosedived by 2.6 percent to $42,000 on 29th September, the second-largest crypto Ethereum also plunged by more than 2 percent to $2,879 on the same day.
The mass sell-off could be attributed to Chinese govt warning all its investors and traders of legal consequences if anyone involved in any cryptocurrency transactions.
Cryptocurrency exchanges or trading platforms were effectively banned by regulation in September 2017 with 150+ platforms closed down by July 2018. While many bitcoin mining operations in China had stopped operating by January 2018, a complete ban on cryptocurrency trading and mining was put into effect on 24 September 2021.
It may also be recalled that in early 2018 India's central bank i.e., the Reserve Bank of India (RBI) announced a ban on the sale or purchase of cryptocurrency for entities regulated by RBI. In March 2020, the Supreme Court of India passed the verdict, revoking the RBI ban on cryptocurrency trade. In 2021, the government is exploring the creation of a state-backed digital currency issued by the Reserve Bank of India, while not overtly banning private ones like bitcoin.
"China has taken yet another shot in its leg by banning cryptocurrency trades following its crackdown on crypto mining few months back. This is an ideal opportunity for any country to become a leader in this industry by bringing in clearer regulations favouring the industry. India could be that country if we choose to build clearer regulations around this phase, Vikram Subburaj, Co-Founder and CEO, Giottus Cryptocurrency Exchange.
As per coinmarketcap.com, the overall market capitalization of the global cryptocurrency market stands at US$ 1.9 trillion ($2.4 trillion at its peak) with the average daily trade volumes hovering at US$ 100 billion. According to data from Bybt, a cryptocurrency trading and information platform, over $418 million (roughly Rs 3,085 crores) were wiped off the market while more than $326 million (roughly Rs 2,406 crores) were liquidated by 80,563 traders on September 25th 20221.
Meanwhile, Industry analysts peg that the Indian cryptocurrency market is on an exponential rise and is growing steadily over the last few years. The National Association of Software and Services Companies (NASSCOM), in association with Industry Partner WazirX, in its report titled ‘Crypto Industry in India claims that digital currencies along with other applications of DLT have garnered significant attention leading to an exponential growth of CryptoTech Industry in India.
Debjani Ghosh, President, NASSCOM, said, “A consultative and enabling regulatory report towards Crypto technologies can help drive the growth of Crypto ecosystem and innovation in India.”
The same report claims that more than 60% of states in India are emerging as CryptoTech adopters and over 15 million retail investors with over 230 start-ups operating in this space. The report also states that the market In India is expected to grow 2X faster and has the potential to create 800k+ Jobs By 2030. It also has a potential to create an economic value addition of USD 184 billion in the form of Investments and cost savings
Nischal Shetty, Founder and CEO, WazirX, said, in the release asserts, "Crypto is primed to take our PM's Digital India mission forward. In fact, our number of users from Tier-II and Tier-III cities have grown by 2648% and contributed to 55% of total signups on WazirX in 2021. Crypto has immense potential to contribute to our $5 Trillion economy vision, and in the coming years, we'll see crypto overcome the financial barriers for rural India, create more opportunities and access to jobs, investment and capital."
