Even if fears of a renewed general ban on the Indian market for digital assets remain, Bitcoin peer-to-peer trading within the Asian power plant continues to rally, reaching an all-time high in the first week of August.
This exponential growth was originally driven by the apparent Supreme Court decision in early March 2020 to overturn an unconstitutional circular by the Reserve Bank of India prohibiting local banks and various financial institutions from providing services to cryptocurrency exchanges and investors.
According to data compiled from the Bitcoin peer-to-peer (BTC) marketplaces Paxful and Localbitcoins, weekly trading volume in India has increased steadily since April. For example, in the first week of August, BTC’s domestic trading share was $ 4.4 million, which is a significant increase over the weekly trading volume of $ 1.52 million in the first week of January 2020.
Even in March, when the Supreme Court lifted the Reserve Bank of India ban, and the sentiment of the domestic cryptocurrency trader reached a peak, the highest weekly P2P trading volume for BTC was around $ 2.28 million.
Commenting on the increase in P2P trading in India, Nischal Shetty, CEO of Indian cryptocurrency exchange WazirX, told Cointelegraph that the RBI’s 2018 restrictions have made it difficult for Indians to convert the rupee into a cryptocurrency and vice versa. However, since the ban was lifted, a number of cryptocurrency exchanges have been able to create direct banking channels for deposits and withdrawals in local currency, which has contributed to increasing P2P trading. Shetty added:
“With over US $ 135 million in P2P deals executed to date, our P2P volume is growing by more than 33% every month! User logins and daily trading volumes have steadily increased since India’s Supreme Court lifted the bank ban on currencies. Encoded. ”
The volume based exchange outweighs those of the local P2P platforms
As many P2P trading platforms continue to see increased mainstream use, P2P trading volume has also increased across a number of Indian cryptocurrency exchanges. This rise in volume is due to general positive sentiment in the global crypto sector, fueled by milestones such as allowing US banks to provide cryptocurrency management services to their clients, in addition to several major companies entering the relatively young population.
Ashish Singhal, CEO of CoinSwitch, an Indian cryptocurrency exchange, shared his views on the matter with Cointelegraph, noting that P2P trading volume on local Indian exchanges greatly exceeds the volume currently observed on many other P2P platforms:
“In the first week of August, the combined volume of trading on the two major P2P exchanges in India was around $ 4.4 million. In the same period, CoinSwitch alone enabled the Kuber to achieve a trading volume of $ 6.5 million. So it can be assumed that a large number of cryptocurrency investors They use exchanges rather than P2P platforms. ”
Finally, on August 5th, the well-known cryptocurrency exchange OKEx announced the launch of its peer-to-peer trading platform, which will allow Indian crypto enthusiasts to buy and sell BTC and USDT without transaction fees in Indian rupees.
While the announcement acknowledges the current uncertainty surrounding the Indian crypto ecosystem, OKEx CEO Jay Hao previously shared with Cointelegraph his firm belief that another public ban is unlikely: “We are ready to support our Indian partners, and hopefully we can work with the regulators” to clarify their doubts and problems. Major with cryptocurrencies. ”
Indian crypto experts are optimistic
Despite the Supreme Court ruling in favor of cryptocurrencies earlier this year, Shetty firmly believes that due to the fact that cryptography is still an emerging technology, a number of myths and misinformation still surround the entire market. However, he is very optimistic that the Indian government will follow in the footsteps of countries like Japan, the United States, the United Kingdom, and Australia in regulating the domestic digital asset market.
Amid the devastation inflicted on the Indian economy from the ongoing COVID-19 pandemic, which has left many employees across various industrial sectors, coding remains one of the few sectors that continues to show sustainable growth.