50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

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Fifty traders who use Indian crypto exchange Instashift have shared their thoughts on the current crypto environment in India. Most of them said that they “hodl” and would continue to invest in crypto despite regulatory uncertainty.

Also read: RBI Argues Supreme Court Should Not Interfere With Its Crypto Decision

Most Respondents Are Hodlers

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in IndiaA survey was conducted in the first week of October by Indian cryptocurrency exchange Instashift exclusively for news.Bitcoin.com. Launched in March, Instashift offers the buying and selling of over 80 cryptocurrencies.

Fifty active traders in India participated. The goal of the survey was to find out what they think about various crypto-related issues including their investment concerns, the crypto banking ban by the Reserve Bank of India (RBI), and whether they will keep investing in crypto despite regulatory uncertainty.

Among the 50 traders who responded, 43 said that they hodl while seven revealed that they invest short-term.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

Furthermore, 40 traders believe bitcoin is a safe haven against rupee inflation while 10 traders disagree.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

Crypto Investing Despite RBI Ban

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in IndiaIndia is currently drafting crypto regulations which were supposed to be ready in September but have been delayed. Meanwhile, RBI, the country’s central bank, has banned financial institutions under its jurisdiction from providing services to crypto businesses. A number of petitions have been filed against the ban. The country’s supreme court has been trying to hear them since Sept. 11, but the hearing has continually been postponed.

The banking ban by the central bank has adversely impacted some exchanges. One of the country’s largest crypto trading platforms, Zebpay, recently shut down its exchange operations due to the banking problem.

Despite the ban, 32 Instashift traders said that they would continue to invest in crypto even if the RBI intensifies its crackdown such as freezing crypto accounts. Another 12 traders noted that they are also likely to continue trading while six respondents said they would discontinue crypto trading.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

In addition, 36 traders believe that the Indian government will amend existing laws to accommodate cryptocurrencies. Ten respondents believe that the regulators will remove restrictions on crypto. However, only four traders believe that crypto will be legalized and regulated in India.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

Preferred Cash-Out Methods

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in IndiaA number of crypto exchanges in India have come up with their own solutions to the RBI ban. Some have introduced exchange-escrowed peer-to-peer trading services, which they claim have gained much popularity.

Respondents were asked about their preferred methods of cashing out cryptocurrencies into rupees. Forty-eight traders said they prefer to cash out using peer-to-peer sites. Five traders prefer to use local cash deals, four prefer to use gift cards and online deals, and four others prefer to cash out using prepaid crypto Visa and Mastercard services.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

On Sunday, another cash-out method was introduced by one of India’s largest crypto exchanges, Unocoin. The company has launched crypto ATMs to bypass the RBI ban and allow its users to deposit and withdraw rupees. This option was announced after the Instashift survey had concluded, so it was not included in the survey.

As for where to keep their funds, 24 traders prefer to keep them in BTC, 14 prefer altcoins, and 12 specifically prefer stablecoins. Recently, an increasing number of crypto exchanges in India have started listing stablecoins such as tether (USDT) and trueusd (TUSD).

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

Future Prospects of Crypto Ecosystem in India

Amid the banking ban, 35 respondents believe that the fear of regulatory uncertainty is the biggest hurdle stopping the Indian crypto economy from flourishing. Twenty-six traders believe that the lack of banking support is the biggest challenge. Twenty-five traders put the lack of understanding of the crypto industry as the most important factor, while 18 traders attributed the lack of liquidity in the market as the top reason.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

Despite all the hurdles, 41 traders said that they are long-term investors and will continue to invest in crypto. Seventeen traders admitted that they are apprehensive but expect the government to eventually create a positive environment for cryptocurrencies. However, four respondents are entertaining the idea of exiting the crypto space altogether.

50 Indian Traders Share Thoughts on Investing, RBI Ban, Future of Crypto in India

What do you think of the current crypto environment in India? Let us know in the comments section below.


Images courtesy of Shutterstock and Instashift.


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WazirX Announces 35% Growth in Trading Volume

In the past few months, the Indian cryptocurrency community has experienced a wide range of emotions panning from disbelief to indignation to almost giving up (but not quite there yet).

There have been multiple updates about the Supreme Court adjourning cases pertaining to cryptocurrency exchanges, individual petitioners, who have gone up against the central bank; the Reserve Bank of India (RBI). Apart from that, one of the oldest Indian cryptocurrency exchanges, Zebpay shut shop, because it was simply too difficult to keep on going, in this particular climate of uncertainty.

However, there is hope in these uncertain times. WazirX, one of the new entrants in this field, announced that their trade volumes saw a 35% rise in the past few months. In a press release, the exchange said that they had announced the commencement of P2P model, where it would escrow the digital assets and facilitate direct peer-to-peer transfers. Apart from that the exchange had also launched Tether, a stable coin backed by USD, in order to facilitate the P2P transactions.

Commenting on the growth, Nischal Shetty, the Chief Executive Officer (CEO) of WazirX said, “We are extremely humbled and proud to announce that the monthly crypto trading volumes at WazirX has surpassed INR 35 Cr. While a huge question mark palled over the fate of crypto trading in India after the RBI ban, we have continued to persevere and our users have immense faith in our platform. In fact, despite the RBI ban, we have observed a 35% month-on-month growth in an otherwise sluggish market. The growth figures only motivate us to step up a notch and bring more Indians under the folds of blockchain economy and crypto trading.”

Last month, when the exchange had announced that it had been given a spot on CoinMarketCap, Crypto-News India had reached out to Shetty and had asked him, what the progress meant in the Indian context. On that occasion, Shetty had said, “Considering the sheer size of our population and the percentage of youngsters in India, everyone in the world is watching us closely. But due to our current (uncertain) stance on crypto, a lot of projects find it risky to expand in India. I really hope that the Supreme Court verdict will change that, and India will be seen as a pro-crypto nation!”

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IAMAI Forms Blockchain Committee to Drive Innovation

IAMAI Logo

The Internet and Mobile Association of India (IAMAI) has put together a blockchain committee in order to “energize blockchain technology so that it can fulfill its potential of facilitating job creation for the new economy,” as per a report published by the news portal Asian Age on Monday.

According to the report, the agenda of the committee would be to: a) nurture the ecosystem and work towards development of skills b) engage with business, industries and governments for a broader adoption of the blockchain technology and c) Help drive training workshops, to help users be familiar with the technology.

This ambitious project is chaired by some eminent names such as Tina Singh, Chief Digital Officer, Mahindra Finance and co-chaired by Prasanna Lohar, Head –Innovation and Architecture, DCB Bank Limited.

Other prominent members of the committee are Manish Gupta, Director- Digital Transformation, Mastercard, Samiran Ghosh, Chief Digital Advisor, Microsoft, Jitan S Chandanani, Blockchain Offerings and Engagement Leader – ISA, IBM, Ravi Chamria, Founder, Sofocle Technologies, Sandeep Goenka, Founder, Zebpay, S Venkat Kumar, Vice President, Kotak, Nitin Chug, Country Head- Digital Banking, HDFC Bank amongst others.

Speaking about this development, Tina Singh said, “Blockchain is undeniably the technology of the future, slated to bring decentralization, trust and accountability into multiple areas of business. However, in order to be more effective and enter the mainstream, blockchain technology needs the intervention of government bodies, regulatory authorities and corporates. The IAMAI Blockchain Committee will focus on creating dialogue between all stakeholders; curate and create content to aid skill development and move towards creating a participative economy with the usage of blockchain.”

Although this committee does sound promising, a few more details is required in this case. We reached out to IAMAI for further details. We will update the story as and when the body responds.

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