However, this uncertainty hasn’t stopped major exchanges from exploring the possibility of building out their presence in India. According to a report by Reuters, U.S.-based Kraken, and Hong Kong-based Bitfinex and KuCoin are “scouting the market” to potentially set up camp in the country. The report said that according to analysts, Indian cryptocurrency investors hold assets worth $1.37 billion. [Read: Why entrepreneurship in emerging markets matters] Cryptocurrency giant Coinbase has already expressed its intention to so set up offices in the country by acquiring startups and going on a hiring spree. Binance has set up its operations in India by buying local cryptocurrency exchange platform WazirX in 2019. Even if foreign cryptocurrency exchanges enter the Indian market, there are a lot of regulatory hurdles to account for. In May, the Economic Times reported that the government wants to set up a study panel to mull over cryptocurrency regulations. The report noted that there might not be a complete ban on digital assets after all. Meanwhile, the Reserve Bank of India (RBI) is reportedly urging other banks to cut business relationships with crypto trading exchanges. It’s not going to be easy going for foreign companies looking at India, but the gamble could pay off eventually.
