The crypto market has been undertaking this lately. Do you think that calamity will last longer than expected anticipation of rate hikes and fear of economic slowdown?
Amidst the dream bull run of 2021, crypto assets delivered cosmic returns which were never seen in modern history. We need to know that every asset class goes through the correction phases and the trends are dependent on various factors surrounding the economy. The crypto market is undergoing a circle of correction phase and it will result in a mature and stable investment ecosystem for crypto enthusiasts around the world.
Since the beginning of the new financial year, Indian crypto volumes have been hit hard.
Do you understand that investors have lost interest in the digital asset class?
Encouraged many investors sitting on the fence to take a jump in crypto assets. First-time we witnessed a massive jump between the investors which extended the crypto holdings among Indians. Crypto investors are long-term holders who believe in the potential of crypto assets for beating inflation and building long-term wealth. The lessening in the exchange volumes is attributed to the new regulatory regime in crypto industry.
Do you understand that Indian exchanges have mechanisms for fair trade practices?
Homegrown trading platforms and crypto companies have faced some strict regulatory action. Indian exchanges have a huge responsibility to keep the money safe and secure. Most crypto exchanges follow strict AML and KYC procedures to comply with the regulations and prevent misuse of crypto assets. After the new tax rule was implemented, all the crypto transactions came under a tax lens and tracked every penny moved within the crypto ecosystem
Many founders running crypto entities in India are Indian residents and are easily accessible to Indian agencies and authorities giving a comfort level to the government for secure crypto operations by India-registered companies.
Indian exchanges do not have anybody for regulation or guidance. Even the self-regulatory mechanisms aren’t enough for all the difficulties.
The Crypto industry has moved from self-monitored regulation to government regulation after the recent tax regime was implemented. Just like the stock market, crypto exchanges should be monitored by a Sebi-like body and partly under RBI.
What are your strategies to increase the user base?
BuyUcoin is India’s longest-running cryptocurrency exchange with a user base increased across the breadth and length of the country. Our user base is spread across the country.
The investors in India have realized the advantages of long-term crypto investing and first-time, we have observed that the crypto investors are holding their crypto assets to protect their wealth from inflation for a longer period. Support from the formal banking system, business-friendly policies, and easy tax filing are a few of the factors that can truly boost the confidence of India’s growing and strong crypto community.
We need to actively work towards building an investment ecosystem where entrepreneurs are allowed to begin without worrying about the future of their ventures and investors can trade without any fear. We are required to create localized venture funds dedicated to funding crypto startups. Crypto entrepreneurs must leverage their experience to raise a new class of crypto entrepreneurs in domains like crypto security, Defi, and Web3.