“We have every reason to expect this will play a role in accelerating the adoption of blockchain technology in India.”
Lorenzo Santos, MetaMask product manager.
In India, Onramp. Money is a cryptocurrency exchange that offers services to help people who use fiat currencies convert their funds into cryptocurrencies such as bitcoin.
What impact will this integration have on the crypto industry in India?
The integration will make it easier for Indian customers to finance investments on Ethereum and use that currency within DeFi applications. Even though India’s regulatory structure for crypto assets is challenging, it includes a 30% tax on gains and a 1% withholding tax.
The cryptocurrency sector in India faces obstacles, including the need for legislative certainty from the government and difficulties in obtaining banking channels. Since Nirmala Sitharaman, India’s Finance Minister, delivered her budget address for the coming fiscal year on February 1st—two days before the cryptocurrency market crash began in earnest—the finance minister made no mention of any upcoming asset-related changes or regulations.
Despite this, Sitharaman and other government officials have emphasized the need for a unified approach to cryptocurrency regulation—similar to laws adopted globally—to give crypto users in India clear rules.
Will India soon become a hub for cryptocurrency?
As the current G20 president, India, whose prime minister recently commented on crypto regulation and its adoption in India, has a unique opportunity to influence international crypto policy.
The country’s new prime minister, Narendra Modi, who took office on May 26th after winning a landslide election in the spring of 2019—has made cryptocurrency regulation one of his government’s top priorities. (Here are six ways he could structure it.)
During this period, the Esya Centre estimates that Indians transferred over $3.8 billion in trading volume from domestic exchanges to international ones.
While India holds the G-20 presidency, it can be a bellwether for future crypto legislation.
