The Indian Bitcoin exchange, BTCXIndia is shutting down its Bitcoin trading platform from 20th of this month. According to its website, the company has run into trouble with its banking service provider. In an unexpected policy change, the BTCXIndia’s bank stopped servicing Bitcoin based businesses in the country, many other banks are following suit. This sudden development has hampered the operations of the company, forcing them to halt their operations until the conditions become more favourable.
Like many other countries, India hasn’t implemented Bitcoin regulations yet. The Indian government and the Reserve Bank of India are keeping a close eye on the new developments in Bitcoin sphere. It is assumed that due to lack of clear regulations, the banks are avoiding any probable risks associated with Bitcoin or related services. BTCXIndia on its website states that their search for an alternate banking partner proved to be futile as they could not find one who was willing to work with the company’s business.
India presents an attractive market for the Bitcoin companies because of the following:
- India is the second highly populous country in the world where the median age of the population is 27 years.
- Over 40 percent of the Indian population is unbanked.
- Indian youth is known to be tech savvy and they can easily adopt to Bitcoin technology.
- India’s inward global remittance is valued at over $70 billion.
- India has the third largest start-up ecosystem in the world.
- India has the second largest mobile phone user base in the world. The mobile phone penetration is close to 75 percent.
Many Bitcoin companies are looking to expand their operations into India. Recently Harborly, a Texas based Bitcoin company announced its planned entry to the India market. Even Hasley Minor, the CEO of Bitreserve has announced the plans to launch it in India soon.