Crypto exchange CoinDCX has raised up to $3 million dollars in a Series A funding round in order to grow and develop crypto products and services in India.
According to the report, the crypto exchange, which is based in the Mumbai area of India conducted a series A funding round involving popular crypto big names like Polychain Capital, Bain Capital Ventures, and HDR Group, operator of BitMEX, with participation from other venture capitalists.
“India is a market with a huge potential for cryptocurrencies,” said Sumit Gupta, co-founder and chief executive officer of CoinDCX. “Crypto as an asset class is poised for takeoff.” The country has a couple hundred million unbanked citizens and a massive dollar remittance market that make it fertile territory.
The funds will be used for its next phase of development including product enhancements, service enhancements, research and development, marketing activities, and human resource growth. The company said that the fresh funding will allow it to accelerate improvements to its service-offering to match the recent uptick in Indian crypto users.
CoinDCX will also deploy the funds towards market expansion activities, as well as the addition of new trading pairs to the CoinDCX platform. The exchange also has plans to develop a fiat onboarding solution in partnership with major crypto projects, algorithm-based trading, as well as a crypto-to-crypto trading product in the pipeline for 2020.
India Recently Welcomed Cryptos With Opened Arms
On March 4th, 2020, the Supreme Court lifted the curbs on exchanges in cryptocurrency imposed by the Reserve Bank of India. The judgment came after a series of hearings challenging RBI’s ban on financial firms or individuals in India from trading in cryptocurrencies.
A three-judge bench of Justices Rohinton Nariman, Aniruddha Bose, and V Ramasubramanian delivered the judgment. Also, IMAI (Internet and Mobile Association of India ) had argued that the cryptocurrency was more in the nature of the commodity than “currency” in the strict sense. Moreover, RBI does not have powers to impose such a ban in the absence of a law in that regard prohibiting cryptocurrency.
Possible Crypto Regulation In India
The nation of India patiently awaits an unprecedented regulatory framework upon which bitcoin and similar cryptocurrencies should be used in the country. This follows a period of excitement as the crypto community in the region recently claimed what could be temporary absolute freedom to adopt and use bitcoin and other desired cryptocurrencies.
According to people familiar with the matter, there’s an underway development of regulatory instances for the use of cryptocurrencies in India. According to these sources, the Reserved Bank of India (RBI), which evidently is against the use of cryptocurrencies in India and which in fact, banned its use previously, may become a sole contributor to this development.
The regulation of cryptocurrencies, however, may not permit their usage in payment systems the people cited earlier said, adding that they won’t be allowed as a legal tender even then.