Bitcoin News

Indian Bitcoin Exchanges See Massive Growth in Userbase, Possible Regulation Talks

Indian Bitcoin Exchanges See Massive Growth in Userbase, Possible Regulation Talks

Indian Bitcoin Exchanges See Massive Growth in Userbase, Possible Regulation Talks

​Leading bitcoin exchanges in India including Unocoin, Zebpay and Coinsecure have seen massive growth in their user base over the past year. According to Unocoin co‐founder Sunny Ray, Unocoin recorded 200,000 new users in the last six months.

Unocoin is one of the core infrastructure providers in the Indian bitcoin industry. It operates a major bitcoin exchange and trading platform that is used by hundreds of thousands of users on a daily basis

Since its launch in 2014, Unocoin along with other exchanges in the region worked toward building a praccal ecosystem and environment for both traders and investors. Despite the lack of regulatory clarity toward bitcoin in India, exchanges including Zebpay and Unocoin connued to operate with self‐regulaon by implemenng similar an‐money laundering (AML) and know your customer (KYC) policies as exchanges in other regulated regions.

In recognion of local Indian exchanges’ intent to be regulated and offer proper services to the public, the Indian government decided to take an opmisc approach toward bitcoin and regulate the market for the public.

Specifically, the Inter‐Disciplinary Commiee within India’s MInistry of Finance is currently draing new policies and regulatory frameworks for bitcoin exchanges and businesses with the plan of regulang the market in the near future.

“Finally, something posive for the industry. Authories are now taking this technology seriously. We have been trying to get their aenon for years now. I am glad it's all happening at the right me. At Coinsecure, we are seeing a massive increase in the number of users and volumes. We are posive with what will happen in these coming three months,” Coinsecure CEO Mohit Kalra said in an interview.

The government’s willingness to adopt bitcoin and the country’s on‐going financial crisis have ulmately increased the demand for bitcoin in India. Ray stated that it took over two years and 10 months for Unocoin to add 200,000 users to its user base. In the second half of 2016 however, Unocoin recorded the same amount of users as it did throughout a period of three years dang back to 2014.

“It took 2 years and 10 months for Unocoin to reach 100,000 users. It only took another 6 months to reach 200,000 users,” said Ray.

Another important factor behind the rapid growth of the bitcoin industry and rising demand for the digital currency in India has been the country’s struggling financial and monetary system. Almost immediately aer India’s Prime Minister Narendra Modi announced the demonezaon of 500 and 1,000 bank notes, the country’s ATMs began to run out of cash to dispense.

In fact, local analysts reported that 90 percent of the country’s ATMs currently have no cash to dispense. As a result, Indian residents have been struggling to fund basic necessies and day‐to‐day expenditures for months.

Researchers from the Times of India stated:

“Sources said more than 90 per cent of the ATMs in the region do not have cash while in the plains and Agency areas running dry.”

India’s financial crisis and the government’s opmisc approach toward bitcoin are expected to strengthen the growth of the local bitcoin industry.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

Bitcoin exchange India Bitcoin indian currency Unocoin