Sudden Expansion of Cryptocurrency Market in India during Covid-19 Lockdown

Crypto derivatives exchange Delta Exchange has announced a new injection of funding from blockchain investor CoinFund, aiming to provide strategic resources for both parties in their focus to expand in India. The Crypto ecosystem in India is still under development. Two months after the Supreme Court struck down a Reserve Bank of India circular, which had brought the cryptocurrency market in India to a near standstill, the industry is back in action again.

Crypto industry leaders in India are divided over whether some of the newfound interest in virtual currencies is driven by the aggressive monetary policies of central banks in response to the economic downturn caused by the COVID-19 pandemic. Some crypto proponents have drawn a parallel between virtual currencies and gold which also acts as a hedge against inflation and rises when monetary policy is loose.

India’s cryptocurrency sector is booming during the extended nationwide lockdown. Investors should also take note of the regulatory risks associated with virtual currencies. The Supreme Court has invalidated the RBI ban on cryptocurrency-related payments but it has not ruled on the legality of cryptocurrency in India. A draft government bill in 2019 reportedly sought to criminalize for possession of cryptocurrency in India. However, the bill was not introduced in Parliament. Still Craze for Cryptocurrency is high in India.

As per News Reported by, All three crypto exchange executives are seeing record-breaking volumes on their trading platforms. “Our trading volume has been increasing rapidly week over week,” Wazirx’s CEO confirmed. “In fact, this week we recorded one of our highest daily trading volume of over $10M.” He additionally revealed, “Our user signups have also shot up tremendously. We also hit an ATH for our weekly active user's number last week,” adding: Our trading volume before the lockdown in India used to be around $1M. It has grown over 10X in just 60 days.

Big opportunities in the Indian crypto derivatives market
Speaking to Cointelegraph, Alex Felix, managing partner of CoinFund, said:

“The crypto market opportunity in India is big! The combination of the Supreme Court’s decision to invalidate RBI’s ban on crypto, increasing local interest, and Bitcoin’s momentum have primed the market for imminent explosive growth.”

“India is a hotbed for innovation and there hasn’t been a domestic sandbox for crypto innovation until the supreme court invalidated the RBI ban earlier this year,” Felix said. “It has always been a country with a rich history of talent contribution to blockchain despite there not being as much activity domestically. Now it is time for India itself to take off.”

Pankaj Balani, co-founder and CEO of Delta Exchange, stated that India is a “huge untapped” market, not only for crypto spot markets but also for the crypto derivatives segment.

Topic related: India Cryptocurrency Market in covid19 lockdown. 
Post a Comment (0)
Previous Post Next Post