India’s oldest exchange for trading cryptocurrencies aims to double monthly transactions after a surge in demand, despite the country’s authorities worrying the country’s borders are looming.
ZebPay, a platform with around 4 million customers, expects sales of 2 billion US dollars Trades per month, said board chairman Rahul Pagidipati. While this is still less than a fifth of the deals done by top US exchange Coinbase Global Inc., there is a huge untapped market in India, he said.
“India holds less than 1% of the world’s cryptocurrencies and its potential investor base is 100 million,” said 43-year-old Pagidipati, who started investing in digital coins about 10 years ago, in a phone interview from Durham, North Carolina.
The future of crypto trading in India is highly uncertain after central bank and government concerns sparked speculation that an illegal private coin ban may come into effect. Bitcoin, the biggest Cryptocurrency, hit a record high this month amid further signs of takeover by institutional finance organizations.
While possible changes to the legal framework raise concerns and risks, those will fade with clearer rules, said Pagidipati, who along with his wife owns two-thirds of ZebPay. India will not ban cryptocurrencies given the strong user base and demand, he added.
“When an airplane is first invented, you don’t want to fly because it may not be safe,” he said. “But every year it gets safer.” His Singapore-based company follows strict anti-money laundering regulations for its clients who operate through banks.
ZebPay was founded in 2014 in the west Indian state of Gujarat, home of Prime Minister Narendra Modi. He expects ZebPay’s trading volume to generate $ 25 billion in 2021.
India banned banks and other regulated companies from supporting crypto transactions in 2018. The Supreme Court lifted restrictions last year in response to a petition from cryptocurrency exchanges.
Pagidipati, a turned entrepreneur attorney, doesn’t expect the demand for Bitcoin to wane, even though it looks expensive, and sees a value of $ 100,000 before the end of this year.
“There is massive demand for cryptocurrencies,” he said. “It’s like Apple, expensive but valuable.”