India’s regulatory confusion has not affected the investor sentiment towards cryptocurrency as shown in the latest data from crypto exchanges. It suggests that there is a growing influx of users in the Asian country.
WazirX, a Binance-owned Mumbai-based crypto exchange reported a 2,648% growth to date in the user signups category from smaller cities across India. These are known as tier-II and tier-III cities which host up to 100,000 citizens. The exchange reported:
“Tier-II and tier-III cities have driven almost 55% of total user signups on WazirX in 2021.”
This data showed a rise in the number of women investors and enthusiasts throughout the country. Among all the sign-ups attributed to Indian women on WazirX, 65% of the accounts are based out of the Indian tier-II and tier-III cities.
Citing pandemic-induced lockdown as a primary catalyst, WazirX reported average growth of around 2,950% in tier-II cities like Lucknow, Ahmedabad, and Patna. It is then followed by a similar 2,455% spike in tier-III cities like Imphal, Ranchi, and Mohali.
A fiat payments gateway provider out of Razorpay, Bengaluru, also showed that the smaller cities were responsible for nearly 54% of traffic on its network, highlighting a 92% growth in digital transactions.
According to a quick follow-up with the female traders, WazirX reported that investors are seeking crypto as a means to achieve some financial independence, a higher standard of living, and a source of secondary income.
Amid some resistance from mainstream finance, the Indian crypto space continues to achieve some new milestones. On August 10, Mumbai-based cryptocurrency exchange CoinDCX raised about $90 million in Series C funding to become India’s first crypto unicorn.
Recently, IndiaTech.org, an independent body has managed to recommend a regulatory infrastructure for the Indian government. It is suggesting ways of handling cryptocurrency assets and exchanges. CoinDCX CEO Sumit Gupta supported this move by saying that the recommendations can “open the immense potential for Indians to participate in this new global asset class.”
