In a landmark ruling in early March 2020, the Supreme Court of India quashed the Reserve Bank of India's (RBI) circular that had prohibited banks from providing services to cryptocurrency businesses since 2018. The decision triggered an immediate wave of renewed interest from global crypto firms, investors, and entrepreneurs, transforming India into one of the most promising frontiers for digital assets.
Businesses Expand Into India
Kraken, the San Francisco-based global bitcoin exchange, was among the first to publicly recommit to the Indian market. In a statement on March 9, the company noted that its growth in India had been constrained by the RBI's ban, which prevented banks from opening accounts for crypto exchanges. "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 exchange said. Kraken already had a presence in India with spot, derivatives, and futures products, and the lifting of the ban allowed it to accelerate its plans.
Binance, the world's largest crypto exchange by volume, had already positioned itself ahead of the verdict by acquiring Indian exchange WazirX in November 2019. The acquisition gave Binance a foothold in the Indian market, and the Supreme Court's decision further validated its strategy. UK-based crypto banking platform Cashaa began supporting Indian rupee deposits in October 2019 and has since ramped up its offerings. Other international players such as KuCoin and Paxful have also expressed interest in entering or expanding in India.
Investments Flowing Into India's Crypto Economy
Capital is quickly following business expansion. Hashcash Consultants, a global software company operating the US-based exchange Paybito and payment processor Billbitcoins, announced on March 9 a plan to invest $10 million into the Indian crypto industry in 2020. The company, which has a presence in 26 countries and serves over 100 enterprises, said it will focus on expanding its network in Africa, the UAE, and India. "This is a historic judgment by the Supreme Court that puts India back on the global crypto map," said Hashcash CEO Raj Chowdhury. "The reinstating of cryptocurrency activities has opened an entire geography for fresh collaborations and ventures for global players."
Growing Interest in Cryptocurrencies in India
According to a study by marketing and analytics firm Semrush, India has become one of the top 10 most popular locations to start a business. The study analyzed 606 Indian fintech companies and Google search data over four years. It found that the most searched cryptocurrencies were Bitcoin, Ignis, Ethereum, Nano, and XRP. Indian states with the highest search interest in investing were Delhi, Haryana, and Karnataka, while the top states for buying Bitcoin searches included Haryana, Delhi, West Bengal, Karnataka, and Kerala. Notably, 36% of searches were made by women, and the majority of visitors were aged 25-34. This data indicates a broad and growing appetite for crypto among the Indian population.
Supreme Court Verdict Turns the Tide
The RBI ban had forced many Indian crypto startups to move overseas or shut down. Wilson Bright, CEO of Blocksurvey, told the Economic Times: "Six months back, we pivoted from crypto to blockchain, as we had to sustain. No investor was ready to back us amid the uncertainty of regulations." Incrypt Blockchain founder Nitin Sharma added that the funding environment for startups should improve now that funds no longer have to worry about regulatory clarity. WazirX CEO Nischal Shetty described the Indian market as "a sleeping giant" and predicted that the judgment would lead to hundreds of new startups, activation of VC investment, and job creation. With over 1 billion people and a growing tech-savvy youth demographic, India is poised to become a significant player in the global crypto ecosystem.