Media: Kraken and Bitfinex eye India’s market

Major cryptocurrency exchanges Kraken, Bitfinex and KuCoin are seeking the opportunity to operate in India, despite a possible ban on digital assets in the country. Reuters reports, citing its own sources.

“These companies have already begun talks to better understand the Indian market and entry points,” said one of the agency’s sources.

The exchange with which he is directly involved has begun a financial and legal due diligence of a local firm with a view to acquiring it.

According to the source, the other two venues are at early stages of deciding to enter the market and are weighing options that essentially come down to either setting up a subsidiary or acquiring an Indian company.

A similar route was taken by Binance in 2019, when it acquired the local bitcoin exchange WazirX.

According to Reuters, industry experts estimate that in a country of 1.35 billion people there are 15 million crypto investors who hold more than 100 billion rupees (about $1.37 billion).

“The Indian market is enormous, and it is only beginning to grow. If there were more political clarity, consumers could be spoiled for choice when it comes to exchanges, because everyone wants to operate here,” says Kumar Gaurav, founder of the British fintech startup Cashaa.

In December 2020, the firm opened a crypto-friendly bank in India.

Since 2019, authorities have been discussing a possible ban on all digital assets in the country other than those issued by the central bank. In January 2021, there were again reports that Parliament would consider the relevant bill. In the Finance Ministry refuted plans for a complete ban.

The stance of the Reserve Bank of India (RBI) toward cryptocurrencies remains disputed. In May, media reported that the regulator is exerting unofficial pressure on banks, urging them to cease cooperation with exchanges and traders, despite the Supreme Court’s 2020 ruling overturning the prohibition on serving crypto companies.

At the end of the month, the RBI itself reminded banks of the repeal of the 2018 directive, urging not to cite it. But in June, the central bank governor said the institution retains a wary stance toward digital currencies.

Earlier in March 2021, the American exchange Coinbase posted 10 vacancies in India and said it planned to open an office in the country.

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