Cryptocurrency exchange OKEx is making a push to enter the Indian market, despite the uncertainty surrounding crypto regulations in the country.
The exchange has announced a partnership with local platform CoinDCX to launch a crypto futures product in India. The company said:
OKEx will be taking a bigger step into the Indian crypto scene in a bid to enable more liquidity using its comprehensive expertise in developing top-notch futures.
The partnership will boost CoinDCX’s crypto futures product, called DCXfutures, which allows users trade futures contracts with about 15x leverage on selected cryptos. Users will also be able to trade perpetual futures contracts with BTC and ETH, according to the company.
Maker fees will account for about 0.2% at the launch of DCXfutures, according to CoinDCX. The service will be offered on a by-invitation status for now, but once it’s available to the public, users will be able to access DCXfutures from a single wallet from Q2 2020.
OKEx India head Zac Zou said India’s market size could help increase cryptocurrency adoption: “As one of the largest economies in the world, India is primed to be the driving force behind the mass adoption of cryptocurrencies, which is why we are keen on adding more equitable currencies to the ecosystem.”
Over the past few years, there has been uncertainties surrounding crypto regulations in India. In December 2013, the RBI warned users of the risk involved in trading digital currencies.
In 2017, the nation’s ministry of finance said cryptocurrencies pose a heightened risk of an investment bubble, drawing similarities to the type seen in Ponzi schemes and noting that a sudden and prolonged crash would harm investors.
In 2018, just as other countries started research about a CBDC the RBI also said an interdepartmental group was analyzing the feasibility of a rupee-backed CBDC. The central bank later banned regulated banks from settling crypto trades in the same year.
In 2019, the RBI proposed regulatory sandbox including blockchain but excluding cryptocurrencies. An inter-ministerial committee also proposed a complete ban on private cryptocurrencies. It remains to be seen how this step by OKEx will materialize considering the regulatory hostility around cryptocurrencies.
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