Indian banking sector is not hesitating to lend financial support to crypto exchanges. Selected group of investors and traders to have been sanctioned loans.
The good thing going on in India these days is that the crypto industry there is thriving exceptionally. Indian crypto exchanges such as Unocoin and WazirX had informed that their crypto trading volumes had tripled since May 2020.
In addition, they had informed that they are currently receiving a huge number of signup requests for new memberships. Similarly, the numbers of new signups who had become members of these exchanges had too increased significantly.
Indian crypto experts and heads of Indian crypto exchanges are of the view that this is due to two prominent reasons. One is the pandemic and the other is related to Bitcoin. Since the price of Bitcoin had been surging exceptionally therefore huge investments had been received by exchanges, they informed.
In between this, crypto-exchanges are trying to expand their crypto trading services by establishing more exchanges in other parts of India. In order to facilitate this continuously increasing number of customers, the crypto-exchanges are found in short of funds. In an effort to have more funds, crypto exchanges had sought financial support from banks.
It had been told that banks such as State Bank of India, HDFC, Yes Bank, ICICI etc. had been granting loans. These loans had been provided to various crypto exchanges to increase their capital and for setting up new branch locations in India.
Similarly, individual investors and traders of crypto too had approached these banks for obtaining finances. It was confirmed that the banks had been allowing finance facilities to selected entrepreneurs. The banks had also allowed its customers to send funds from bank accounts into their trading accounts maintained with the exchanges.
Earlier in 2018, the Indian Government had suspended crypto services in India. Resultantly, the exchanges had to pack up and move their offices outside India.
It was at that time when the crypto industry and Indian crypto investors were severely damaged in India. But thereafter the industry and individual businessmen had challenged the Government’s decision before the Indian Courts. The case was then decided in favor of the crypto industry and only in April 2020, crypto services had been reinstated. Since then the crypto industry had been rapidly growing in India.