India has become a hotspot for global cryptocurrency businesses and investors after the Supreme Court lifted the Reserve Bank of India’s (RBI) banking ban on crypto-related entities in early March 2020. The landmark ruling reversed a 2018 circular that had prohibited banks from servicing crypto exchanges, effectively stifling the industry. Now, with the ban removed, international players are aggressively expanding into the Indian market, while local startups anticipate a renaissance.
Major Exchanges Return to India
San Francisco-based exchange Kraken announced on March 9 that it was recommitting to the Indian market. The company, which had long offered spot, derivatives, and futures products to Indian users, said the ban had limited its growth. “Armed with the ability to expand our offering, Kraken is excited to recommit resources to grow its service in the region through new features and offerings,” the team stated. Prior to the verdict, Binance had already acquired Indian exchange WazirX in November 2019, positioning itself ahead of the regulatory shift. U.K.-based crypto banking platform Cashaa began supporting INR in October 2019 and has since ramped up its services. Other exchanges including KuCoin and Paxful have also expressed interest in entering India.
Millions in New Investments
Beyond exchange expansions, direct capital is flowing into India’s crypto ecosystem. Global software company Hashcash Consultants announced plans to invest $10 million in the Indian crypto industry in 2020. The firm, which operates the U.S.-based exchange Paybito and payment processor Billbitcoins, has a presence in 26 countries. CEO Raj Chowdhury called the Supreme Court verdict “a historic judgment that puts India back on the global crypto map,” adding that it “opens up an entire geography for fresh collaborations and ventures for global players, forecasting prospects for the crypto industry and the Indian economy at large.”
Search Interest and Startup Ecosystem Heat Up
According to a study by marketing analytics firm Semrush, India has emerged as one of the top 10 most popular locations to start a business, based on analysis of 606 fintech companies and related Google search data. The most searched cryptocurrencies were Bitcoin, Ignis, Ethereum, Nano, and XRP. The states with the highest search interest for investing were Delhi, Haryana, and Karnataka. After the ban was lifted, several crypto startups that had pivoted away during the ban are now returning. “When a regulator bans, the market closes down,” said Wilson Bright, CEO of Blocksurvey, which had pivoted from crypto to blockchain six months prior. “No investor was ready to back us amid the uncertainty.” Now, founders expect a surge in venture capital interest.
Optimism for India's Crypto Future
WazirX CEO Nischal Shetty described the Indian market as a “sleeping giant” with over 1 billion people. “I’m confident that this judgment will have a positive impact on the global crypto ecosystem. This will lead to more startups in crypto in India. Hundreds of startups will be created. VC investment will activate in the sector. More jobs,” he said. With banking channels reopened, crypto exchanges have reported a rapid increase in INR trading volumes, and global investors are now looking at India as a key frontier for crypto adoption. The Supreme Court’s decision has not only revived a dormant industry but also positioned India as a potential leader in the next wave of cryptocurrency innovation.