BTC trade volumes rise in India after Central Bank ban is lifted

Indian cryptocurrency exchanges reported a significant increase in trading volumes in BTC pairs amid...coronavirus and lifting the ban of the Reserve Bank of India.

According to the CEO of the CoinSwitch exchangeAshish Singhal, the activity of Indian traders is due to the fact that in early March the Supreme Court lifted the Reserve Bank of India (RBI) ban on banking services for cryptocurrency companies. Traders have decided to take advantage of this opportunity before the government again declares digital asset trading illegal as the RBI intends to file an appeal against this court decision.

Kumar Gaurav, HeadCashaa, an online banking platform, said the site’s trading volume increased by 800% within 48 hours of a court order that clarified the regulation. Within a day after the court decision, more than 600 BTC arrived at the site. According to Gaurav, trading volume doubled in March compared with the previous month.

In addition, the Indian cryptocurrency marketperked up because of the panic caused by the bankruptcy of Yes Bank, which was one of the four largest banks in India. Such an event undermined the confidence of citizens in the country's banking system. The situation was aggravated by the fall in the market for traditional assets amid the coronavirus, and on March 24, the Indian Prime Minister announced a three-week quarantine. Together, these events “played into the hands” of bitcoin. According to Cashaa, daily trading volume on various exchanges has grown to 450%.

CEO of the WazirX cryptocurrency exchangeNischal Shetty noted a significant influx of traders due to the coronavirus crisis. During the lockdown, new user registrations increased by 25% and the exchange's daily trading volume jumped by 60%. According to the executive director of the CoinDCX exchange, Sumit Gupta, the volume of trading operations in the BTC/INR pair increased by 78.36%.

CEO of a consulting firm Titus InvestmentAdvisors and Bitcoin supporter Justin Gillespie suggested that in this situation, many people cannot go to work or run their own business, so they begin to pay attention to bitcoin, which can be safely traded from home.

Recently, Indian cryptocurrency executivesexchanges said they are optimistic about the development of the cryptocurrency market in the country as traders are showing increasing interest in cryptocurrency derivatives.

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