siliconindia | | August 20218In FOCUSTHE STATE OF CRYPTOCURRENCY EXCHANGES IN INDIABY si TEAMCryptocurrency exchanges in India are difficult to find. As a result, the prices of cryptocurrencies such as bitcoin are often much higher in India than they are globally. This article takes an objective look at how exchanges have fared in the past few months and what factors could contribute to this difference in price between India and other regions. In particular, lets discuss the likelihood of increasing demand for cryptocurrency exchange services in 2018 and what this could mean for traders trying to purchase digital currencies like bitcoin from Indian exchanges.In recent years, bitcoin has seen a meteoric rise in popularity as more and more people across the world discover its benefits. And yet, to a large extent, the consumer market for cryptocurrency remains inaccessible to many Indians. Bitcoin is nearly impossible to purchase through traditional methods such as credit cards or bank transfers in India, where banks do not recognize digital currencies as legitimate payment tools. But that isn't stopping traders from trying, for example, by converting their rupee balances into international credit cards in order to make purchases from third-party online exchanges. Even so, the costs of these exchanges are high, around 15-20 percent higher than those in other countries.The Indian government has taken an ambiguous stance on cryptocurrencies over the years. There is no set national policy or regulation for cryptocurrencies or best cryptocurrency exchanges in India. As a result, there is no oversight on how exchanges operate and they are allowed to establish prices independently. This lack of regulation has discouraged investors from trading in the country and therefore has made it more expensive than other regions.Indian exchanges focus on listing altcoins that have limited market value. These currencies are priced based on their market capitalization instead of their utility, which means they are more likely to experience price fluctuations due to hype and news announcements. Prices can also be determined by a supply shortage for a particular cryptocurrency if they are not listed on more popular exchanges like Coinbase and Kraken.India's government has recently announced plans to introduce regulations for digital currencies and exchanges. This announcement was made in April 2018 by the central bank of India, the Reserve Bank of India (RBI). RBI has put forth a new proposal known as the 'Draft Banking Regulation Act', which would bring the regulatory framework for all financial institutions under one central authority. In addition, it would also allow for oversight on all exchanges and their operations. It is unclear though if this new 'banking regulation' will impact digital currency trading or how to buy Bitcoin in India.6 Bitcoin Regrets: India's Rules for CryptocurrencyIn India, Bitcoin is not as popular as in the US or China. However, it has earned a strong presence in Mumbai and New Delhi due to the tremendous demand for foreign currency by local residents who want to purchase goods overseas such as cars or homes abroad. This article will cover six bitcoin regrets that many Indians have denounced, and point-out some of the important factors that are necessary for success in the field of cryptocurrency trading and investing in India.
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