India’s ‘Crypto Spring’ as Wave of New Exchanges Launch

The repeal of the Reserve Bank of India’s (RBI) crypto ban has driven a boom in exchanges launching in India, offering hope that the growth of a robust local industry will incentivize lawmakers to maintain India’s permissive regulatory apparatus.

In March, India’s Supreme Court repealed the Reserve Bank of India’s (RBI) ban on financial institutions providing banking service to businesses operating with virtual currencies — legitimizing India’s cryptocurrency firms.

In recent weeks, Indian startup Tradehorn became the latest domestic exchange to launch,  local derivatives platform Delta Exchange announced strategic funding from New York-based CoinFund to expand operations, and new fiat-to-crypto exchange BitPolo also went live. 

The RBI ban’s repeal also sparked an initial rush of interest from global players, with top exchanges such as OKEx and Binance launching fiat gateways for Indian rupees and partnering with local trading platforms.

Local startup launches Tradehorn exchange

Speaking to local media outlet Digpu, Tradehorn’s founder and chief executive, Rahul Vinakiya, emphasized the company’s desire to simplify the experience of trading crypto assets for newbies.

“We are here to serve novice traders, who are absolutely new to this and spread awareness of crypto as an innovation. For us, how we measure [the] success of this platform depends on whether my uncle would be able to use this,” said Vinakiya.

Tradehorn will soon launch a mobile application featuring 24-hour support services, with the app expected to launch for Android and iOS by July.

Despite regulatory warming, concerns remain

Despite the repeal of the RBI ban in March, many firms have since reported that banks are still unwilling to do business with them.

Nonetheless, Tradehorn’s CEO reports having partnered with multiple banks, offering praise to India’s Supreme Court for restoring access to financial services.

However, Vinakiya echoes a familiar gripe among Indian crypto exchanges, urging lawmakers to provide clarity as to the tax implications of operating with cryptocurrencies. In early May, several Indian exchanges petitioned the RBI to make clear whether crypto transactions would be subject to the Goods and Services Tax (GST).

“This is a very important thing which needs to be cleared by the government so that companies and users feel free to start trading. A lot of people don’t know how to get started with crypto, as they are unfamiliar with how the tech implications would work,” said Vinakiya. 

“This clarity would not only help the crypto companies but also for the users.”