The current cryptocurrency industry in India remains somewhat uncertain. Despite the government not officially banning this industry, the Reserve Bank of India is making things a lot more difficult than need be. Surprisingly, the South Korean trading platform Bithumb is now looking to expand into this region. Their effort to build a regulated exchange may shake things up quite a bit.
Bithumb is Expanding
It is not the first time South Korean firm Bithumb has shown an interest in expanding its presence. This is one of the most popular trading platforms in the country, despite growing competition by other service providers. Bithumb Global, the overarching entity, now aims to enter the Indian market despite the uncertain situation keeping this country in its grasp. It is a gutsy move, albeit one that could pay dividends. It is primarily up to the Reserve Bank of India to see how things will play out.
The current objective of launching a regulated cryptocurrency exchange is rather interesting. Since banking channels for virtual currency transactions remain restricted in India, one has to wonder if Bithumb will note any real success in this particular region. The current domestic exchanges are already struggling to make ends meet, although not all of them were forced to shut down either.
Collaboration is key
One interesting aspect of this venture is how Bithumb will collaborate with other Indian exchanges. By creating this unified front, the chances of success could increase drastically. Even though the lack of cryptocurrency regulation hinders growth, there are foreign companies willing to set up shop in India. That in itself shows this industry needs to be treated with respect, instead of opposition at every possible turn.
Which exchanges Bithumb aims to collaborate with, has not been disclosed at this time. There are quite a few companies still active today, thus there should be no problems with finding willing partners. Additionally, the South Korean giant will attempt to fund Indian cryptocurrency startups and offer new initiatives for domestic cryptocurrency traders. That in itself may unlock some interesting and surprising revenue streams for trading service providers in the region.
Regulators’ Response Remains Unclear
It is a well-known fact Indian regulators want to curb the popularity of cryptocurrencies first and foremost. Keeping that in mind, it will be interesting to see how they will respond to this new venture by Bithumb Global. While the company is open to working together with policymakers – and has a track record of being a professional company – that doesn’t necessarily mean regulators will change their minds. An uneasy situation remains present in this country, yet one can only hope things improve sooner rather than later.