India is poised to begin accepting crypto coins via digital exchanges in coming days, a move which could further open up crypto-currency markets in the country.
According to a report in CoinDesk, Indian government authorities have approved the launch of a digital crypto exchange for crypto-currencies to be traded in the upcoming financial year beginning July 1.
The government is looking to attract crypto-monetary traders, which is believed to be around 10 percent of the country’s crypto-market, in order to reduce the countrys dependence on fiat currencies.
The report says the government is considering the possibility of allowing cryptocurrency exchanges in the coming days as it aims to diversify the crypto-markets with new and emerging crypto-finance instruments.
The crypto-exchange will allow trading of cryptocurrencies with an exchange rate of around USD$1, and will have two types of crypto-tokens: crypto-coins and fiat-coins.
The cryptocurrency-toks will be traded using an account linked to an Indian account, while the fiat-tokes will be tradable only on an international exchange.
Currently, India does not have any exchange-traded fund (ETF) that allows crypto-traders to buy and sell crypto-miners’ crypto-coin equivalents.
In a report released on December 8, the Reserve Bank of India (RBI) had said that its plans for a crypto-ETF in the near future are still in the early stages, and that the plans would be finalised in 2019.
As of now, crypto-investors are limited to purchasing crypto-assets directly through exchanges.
This means that investors can only invest in crypto-money directly through crypto-asset exchanges, which are currently under development in India.
The RBI had earlier said that it was in talks with several Indian-based crypto-wallets and payment services providers to set up a crypto exchange, but has yet to make any formal announcement.
However, the report indicates that the exchange will not be limited to crypto-banks and other institutional investors, but will be open to individuals.
Currently in India, there are approximately 40 crypto-mining operations that are set up to mine cryptocurrencies and are trading at about USD$150 million per day.
There are currently more than 600 cryptocurrency exchanges operating in the market.