Regulatory pending financing has quadrupled India’s crypto industry is still favored by venture capital
Although the attitude of Indian regulators towards cryptocurrency is still unclear, the country’s crypto development still maintains a leap-forward growth.
Data show that the country’s crypto market has soared to nearly 40 billion U.S. dollars from about 200 million U.S. dollars a year ago. In addition, India’s encryption and blockchain industries continue to be favored by venture capitalists. According to data from the Indian data intelligence platform VCC Edge, so far this year, the Indian encryption and blockchain industry has reached 13 transactions through venture capital companies, with a total amount of more than US$176.9 million, which is four times that of last year. A total of 10 transactions were concluded last year, with a total value of US$44 million.
Among them, the Indian cryptocurrency exchange CoinDCX has just raised 90 million US dollars, accounting for more than half. It is reported that this financing was led by the Capital Group of Facebook co-founder Eduardo Saverin, and existing partners Coinbase, Polychain, Block.one and Jump Capital participated in the investment. CoinDCX became the first crypto unicorn in India.
Industry insiders said that there will be more large-scale transactions in the future. Venture capital firms are looking for top cryptocurrency exchanges, while smaller companies are looking for seed funding for Dapps and crypto wallets.
Sharan Nair, Chief Commercial Officer of Coinswitch Kuber, pointed out that although many industries have changed due to the 2021 pandemic, the fintech industry is not among them. For Indian crypto players, 2021 is still a hot period for the industry.
The Supreme Court’s ruling earlier this year also encouraged investors. On March 4, 2020, the Supreme Court of India ruled that the Bank of India (RBI) 2018 ban on banks from providing cryptocurrency trading services was unconstitutional. At that time, the industry generally believed that the spring of India’s cryptocurrency industry was here. There are also executives of Indian crypto industry companies who pointed out that it is difficult for the government to ignore cryptocurrencies. It is very important to embrace all digitization while managing risks.
Although there are still differences in overall regulation, the Indian government has abandoned its earlier plan to ban Bitcoin and intends to classify cryptocurrency as an alternative asset class.
At the same time, India has also introduced relevant regulatory measures. The Ministry of Corporate Affairs of India has revised the disclosure specifications of the Enterprise Act, requiring Indian companies to disclose the details of cryptocurrency transactions.
Analysts said that these are a positive signal for the market. Compared with the prohibition and uncertain attitude, the introduction of related regulatory programs and possible taxation plans is obviously more capable of promoting the stable development of the industry.
It is worth mentioning that, in the face of the development of the encryption market and the blockchain industry, Amitabh Rajan, Chairman of the Reserve Bank of India Service Committee, recently stated that India must accelerate the pace of blockchain and industry 4.0. In terms of blockchain, he emphasized regulatory issues. He mentioned that last year, three judges worked hard to understand the concept of cryptocurrency and lifted the 2018 central bank’s ban on cryptocurrency exchanges and start-ups. He pointed out that “financial and monetary issues will ultimately end up in policy decisions.” After the global financial crisis, many arguments that the market should operate freely, innovate itself, and the government does not need to intervene are no longer tenable. India urgently needs to develop a regulatory framework for blockchain and virtual assets. The sooner you make a decision, the better.
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(Part of the news is compiled from timesnownews)
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