400% jump in crypto trading activity was recorded in India during the Covid-19 lockdown but the lack in regulations and reports to ban cryptocurrency remains a concern so let’s read more about it in the latest crypto news today.
The trading volume of cryptocurrency in India recorded a 400% jump in the past few months during the nationwide lockdown due to the ongoing Covid-19 pandemic. The boom in crypto trading is said to have increased after the Supreme Court lifted the ban at the start of 2020 as a few players and retail investors entered the cryptocurrency market within the past few months according to a The Hindu report. Former CEO of Zebpay Aeet Khurana, also the head of the blockchain committee of the Internet and Mobile Association in India said:
“Along with the lifting of the restrictions on trading, the lockdown has also pushed people to stay at home and many people are spending more time on their desktops and many of them are trading more. Trading volumes are quite robust. Daily crypto trading volume in India maybe USD10-USD30 million.”
He also said that the number became much more significant than before which is why this is now a valid asset class and commercial activity:
“The regulators can no longer look away and fundamental issues like classification, taxation, need to be addressed.”
More entrepreneurs now expect to get on board the crypto trading wagon as the founder and CEO of WazirX Nischal Shetty, said that the company saw almost a four-time increase in sign-ups and said:
“The lockdown has been a major factor. People have more time to understand and learn new things. Also, a lot of people are looking for new avenues of making money online, as they don’t have a job right now or their jobs are offline and they can’t go to work.”
The lack of clarity on regulations and reports on a possible law to ban cryptocurrency remains a threat in India. The Government recommended last year that crypto should be banned in the country because of the many risks and price volatility. While the SC allowed banks to provide services for virtual currencies, the Centre was not able to figure out how to regulate the segment despite the many committees that came up with different proposals including two draft bills as well.
Shetty also said that the Internet and Mobile Association of India is now working to create a code of conduct for crypto:
“We, as part of IAMAI, are trying to come out with regulatory pointers. Guidelines such as those on KYC will address concerns on money laundering and illegal activity.”
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