Despite regulatory uncertainty, the amount of funding has quadrupled in India’s crypto industry, which is still favored by venture capital

Data shows that the country's crypto market has soared from about $200 million a year ago to nearly $40 billion. In addition, India's crypto and blockchain industries continue to be favored by venture capital. According to data from VCC Edge, an Indian data intelligence platform, India's crypto and blockchain industries have reached 13 deals through venture capital companies so far this year, with a total amount of more than $176.9 million, which is four times the amount of the whole of last year. Last year, a total of 10 deals were reached with a total amount of $44 million.

Among them, Indian cryptocurrency exchange CoinDCX has just raised $90 million, accounting for more than half. It is reported that this round of financing was led by Capital Group, co-founder of Facebook Eduardo Saverin, and existing partners Coinbase, Polychain, Block.one and Jump Capital participated in the investment. CoinDCX has become India's first crypto unicorn.

Industry insiders say there are more big deals to come. Venture capital firms are scouting for top cryptocurrency exchanges, while smaller firms are seeking seed funding for Dapps and crypto wallets.

Sharan Nair, chief business officer of Coinswitch Kuber, pointed out that while many industries have been transformed by the pandemic in 2021, the fintech industry is not among them. For crypto players in India, 2021 is still a hot period in the industry.

Investors were also encouraged by the Supreme Court’s ruling earlier this year. On March 4, 2020, the Indian Supreme Court ruled that the Reserve Bank of India’s (RBI) 2018 ban on banks providing cryptocurrency trading services was unconstitutional. At the time, the industry generally believed that spring had come for India’s cryptocurrency industry. Executives of Indian crypto companies also pointed out that it was difficult for the government to ignore cryptocurrencies, and it was important to embrace all digitalization while managing risks.

While differences remain over overall regulation, the Indian government has dropped its earlier plan to impose a blanket ban on Bitcoin, instead classifying cryptocurrencies as an alternative asset class.

At the same time, India has also introduced relevant regulatory measures. The Indian Ministry of Corporate Affairs has revised the disclosure regulations of the Corporate Act, requiring Indian companies to disclose details of cryptocurrency transactions.

Analysts said that these are positive signals for the market. Compared with prohibition and uncertainty, the introduction of relevant regulatory schemes and possible taxation plans will obviously promote the stable development of the industry.

It is worth mentioning that in the face of the development of the crypto market and blockchain industry, Amitabh Rajan, Chairman of the Reserve Bank of India Service Committee, recently stated that India must accelerate the pace of blockchain and Industry 4.0. In terms of blockchain, he emphasized the issue of regulation. He mentioned that last year, three judges lifted the central bank's 2018 ban on cryptocurrency exchanges and start-ups by trying to understand the concept of cryptocurrency. He pointed out that "fiscal and monetary issues will ultimately come down to policy decisions." After the global financial crisis, many arguments that the market should operate freely, be self-reinventing, and the government does not need to interfere have become untenable. India urgently needs to develop a regulatory framework for blockchain and virtual assets, and the sooner the decision is made, the better. (Part of the news is compiled from timesnownews)