With the Supreme Court setting aside the Reserve Bank’s circular banning banks from dealing with cryptocurrency, several exchanges have started opening accounts to bring back trading on exchanges like they were doing before April 2018.
However, investors have been advised caution in trading till the government the clears its stand on the issue. The Centre had in February 2019 introduced a Bill proposing a ban on cryptocurrency.
Bitcoin, the largest and the first cryptocurrency, is commanding premium of 1.5-2 per cent of its cost on one of the exchange’s apps which has started permitting trading against payment. Even buy-sell spread was seen very high despite new investors’ registration was noticed.
Unocoin, a crypto exchange from the south, has resumed offering services. The exchange’s chief executive officer (CEO), Sathvik Vishwanath, said: “We already have processed hundreds of requests for deposit and withdrawal of Indian rupee and more customers are signing up now.”
Another exchange, WazirX, is expected to finalise proposals of banks that have shown interest in opening their account. The exchange was recently acquired by Binance, which is the world’s largest crypto exchange.
“We have the best mobile app in India with highest rating. We will continue to offer attractive features for Indian users so that they can easily be involved in Bitcoin and other crypto. We are at testing stage,” said the exchange’s CEO Nischal Shetty.
“Doors to massive crypto adoption in India has now opened. It proves that we can now innovate, and the entire country can participate in the blockchain revolution. With more than 1 billion population, the Indian market is a sleeping giant,” Nischal said.
He sees hundreds of new crypto start-ups in India, millions of dollars of venture capitalists’ investment in this sector and more job openings.
Naveen Surya, chairman emeritus, Payment Council of India and current Chairman of Fintech Convergence Council, is bullish after the SC judgment. He, however, cautioned investors against dealing with cryptocurrency till the Centre came up with its plan to deal with it.