WazirX, an Indian cryptocurrency exchange reported significant increases in both its trading volume and user base over the past year. They claimed the platform’s user base grew to 10 million during 2021, which represents a tenfold increase.
WazirX’s 2021 trading volume to date has been around $38 billion, CoinDesk reported, with a month-over-month increase of 44%.
They had an important surge of 2,648% in users who registered to the platform from some of India’s largest cities, Mumbai, Delhi, Kolkata, Chennai, Bengaluru, and Hyderabad (Tier II and Tier III), where crypto trading already had reported maturity before with high rates of interest and transactions in users under 35 years.
According to them, this growth was also supported by female investors. The user base had increased by 30%-40% between September and September.
India reportedly has one of the world’s fastest-growing crypto market, with a 641% yearly increase, according to Chainalysis:
Transactions sent to India from addresses based in India account for 42%, 28% and 29% respectively. Those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organizations.
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The Way to Crypto Literacy
WazirX’s strategy to increase crypto literacy in India has been a focus for the last year. They provide transparency and other sources of education. For this reason, they launched India’s crypto exchange first transparency report last October, where they stated the following:
We are dedicated to providing accurate information and a supportive environment that allows users to make educated decisions.
Amongst their efforts, WazirX CEO Nischal Shetty carried a Twitter campaign under the hashtag #IndiaWantsCrypto with the purpose of sharing cryptocurrency insights and creating awareness on the industry, “which generates thousands of jobs, not to mention vast amounts of monetary value.”
They have also launched YouTube series, ‘Blockchain Papers’, A podcast. All to grow the user’s understanding of their platform, clear fears, and misconceptions. Their collaborations include educational institutions such as IIT and IIM.
We believe that our customers will be able to make educated decisions about crypto investments by dispelling misinformation.
These projects are also meant to open paths between the crypto industry and the country’s policymakers, hoping that more widespread information will help bring regulations.
Crypto exchanges hope for regulations
Over the past years, India has not been a favorable country for cryptocurrencies. The situation isn’t clear enough. However, many crypto exchanges and users remain optimistic about future regulations that will bring more clarity to the sector and allow for greater growth.
All cryptocurrencies were banned by India’s central bank in 2018, prompting many investors and traders to respond. Around that time, WazirX launched WazirX P2P “to help users buy/sell crypto with INR” and carried a 1000-day Twitter campaign “to build a case of why we need to allow crypto to foster innovation”.
Then, in March 2020, The Supreme Court of India lifted the Reserve Bank of India’s (RBI) ban and called it “unconstitutional”. The crypto panorama started to soften for India, which allowed WazirX to become one of the country’s largest cryptocurrency exchanges.
The first discussions around regulation began back in those days. India’s crypto exchanges and investors participated in off-the-record meetings with law enforcement agencies and banks hoping to reach a point of amicability.
Expectations are that the government will classify Bitcoin as an Asset Class and for the Securities and Exchange Board of India (S&E Board of India) to regulate cryptocurrency and provide clarity. This would close the door to another ban.
Currently, the lower house of parliament listed a meeting under the name “Hearing of the views of associations, industry experts on the subject of ‘CryptoFinance’: Opportunities and challenges,” believed to happen in February 2022. WazirX and other crypto exchanges were invited for the first time. Their hopes are continuing to rise.
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