Indian Cryptocurrency Market Grows. Overview.
The Indian cryptocurrency market is of particular importance to the entire industry. Especially after the recent lifting of the ban on the circulation of crypto assets.
The Indian PR agency Bit2Buzz presented the results of research of the cryptocurrency market in the country after the lifting of the ban on the circulation of digital assets.
The agency notes that over 70% of the young population of India already trades or owns cryptocurrency on exchanges and neobanks. The younger generation mainly stores and trades cryptocurrency on Indian cryptocurrency exchanges. The generation aged 35 to 50 uses mainly neobanks.
Cryptocurrency is traded or stored by people aged 18 to 50 years. Generation X (people born from 1960 to 1979) rarely use cryptocurrencies, according to Bit2Buzz research.
The research also notes that the main factor in cryptocurrency activity in the country is the side effect of the pandemic of the coronavirus infection COVID-19.
Cashaa, a cryptocurrency exchange service for virtual assets, said its turnover grew by more than 800%. However, neither Cashaa nor Bit2Buzz provided any evidence of such a statement.
One of the largest Indian cryptocurrency exchanges, CoinDCX, noted that trading activity significantly increased during the self-isolation regime.
“The closure due to the Covid-19 pandemic meant that Indians spent more time at home, maintaining national interest and curiosity for cryptocurrencies, which were already high due to the favorable verdict of the Supreme Court,” CoinDCX said.
This is not the first research signaling a potential “crypto-boom” in India. Earlier p2p platform for trading bitcoin Paxful published research on the future potential of the cryptocurrency industry in India.
The study noted that the main drivers of the development of the cryptocurrency industry in the country will be large enterprises and departmental institutions.
However, although the Reserve Bank of India lifted the ban on financial institutions to provide services to individuals and companies associated with cryptocurrencies, many banks still adhere to anti-cryptocurrency policies. Indian banks still freeze and close the bank accounts of those customers who are caught in the circulation of cryptocurrencies.
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