CoinDCX, India’s largest cryptocurrency exchange, announced it has raised $ 2.5 million from investors like Polychain Capital and Coinbase Ventures, the investment arm of Cryptocurrency Exchange Coinbase.
The investment will be made shortly after a Series A swap round in March, when CoinCDX received $ 3 million from Bain Capital., Polychain and HDR Group, the operator of the BitMEX cryptocurrency exchange.
In a CoinDCX announcement on May 25, the exchange said it would use the funds to promote mass adoption of cryptocurrencies in India through its “TryCrypto” campaign.. CoinDCX stated that its goal is to have 50 million cryptocurrency users in the country. One of TryCrypto’s initiatives will be a cryptocurrency and blockchain education program aimed at new merchants.
Sumit Gupta, co-founder and CEO of CoinDCX, said that the cryptocurrency industry in India has attracted more attention from global companies like Coinbase and Polychain. This latest investment, along with the $ 3 million insured in March, “would provide a small vote of confidence for our roadmap to bring crypto assets to a largely undeveloped Indian market.”
Is trust in the cryptocurrency industry growing in India?
In March, the Supreme Court of India lifted a ban on banking services for companies related to cryptocurrency from the Reserve Bank of India in July 2018.
Coinbase was one of the best crypto exchanges to enter the undeveloped marketand offers cryptocurrency conversions and trading services based cryptocurrency in April.
Although the recent quarantine due to the coronavirus pandemic is still in effect in many parts of the country, the Indian stock exchanges also saw strong growth after the court’s decision.. CoinDCX said it had ten times more users registered in the first week after the ban was lifted and 47% growth in the first quarter of 2020. The WazirX trading platform saw monthly growth of over 80% in both March and April.
However, some Indian banks continue to deny services to support the sale or purchase of crypto assets. Gupta spoke to Cointelegraph on May 14 and said so “Regulation of the cryptocurrency sector in India remains vague”This has caused many traditional financial institutions to hesitate to work with people dealing with crypto or digital assets.
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