OKEx Depeens Access to India as Market Seeks Crypto Uptake
As the Indian crypto market grapples with gaining traction for similar uptake like in other major markets, top Chinese cryptocurrency exchange OKEx has formed a partnership that could see it gain unprecedented access and open doors to liquidity in one of the world’s fastest growing economies.
The partnership with CoinDCX, India’s largest cryptocurrency trading platform and liquidity aggregator, will see them launch DCXfutures, a futures product that offers leverage trading on Bitcoin and eight leading altcoins.
India has only seen a fraction of the growth associated with cryptocurrency adoption thus far though cryptocurrencies have been gaining acceptance and recognition in developed nations, says CoinDCX CEO Sumit Gupta, regarding the general overview of crypto growth in India in relations to developments in other parts of the world. The partnership will seek to prop the rapidly growing demand for futures trading among Indian cryptocurrency market participants by offering users access to direct future contracts, inverse contracts, and perpetual contracts. Gupta says:
“For example, out of the total $5.5 billion USD invested into blockchain and crypto startups globally, India has only received 0.2% of these capital investments — a very small percentage, especially when given the size and scale of India’s economy and its IT sector. Other technological hubs have experienced much greater capital inflows—Singapore, for example, has seen $744 million USD invested in its bustling fintech economy.
From East to West, he cites the crypto and blockchain innovation happening in various parts of the world and how India is yet to fully appear in the picture. Economic powerhouses such as the United States and China have been racing to register record numbers of patents on blockchain-based products and are already capitalising on such innovations. On the other hand in Asia, Thailand and Philippines have been developing regulatory frameworks for local crypto markets to support the growth of their crypto sectors while protecting the interest of investors and banks. India is yet to be fully in the picture.
“While the legal status of cryptocurrencies within India is, at present, uncertain — I believe that India has immense potential to be equally competitive in terms of cryptocurrency innovation” Gupta adds. “The country has a pool of talented IT developers and entrepreneurs to tap into and leverage, hence, it is in a uniquely well-suited position to emerge as a leader in the crypto sector. As long as cryptocurrency innovation is encouraged and fostered in India, the nation will not lose out on the promise of growth, securing its status as a hub for innovative technologies and crypto developments.”
Established in 2018, CoinDCX will bank on the partnership to gain access to OKEx’s experience in developing futures products to bring more innovative service offerings to market. This will help tap into the huge potential of cryptocurrency markets to accelerate economic growth and wealth generation in India.
“…We believe that this collaboration takes India one step closer to joining the ‘5 trillion dollar club’ as one of the fastest growing economies in the world, allowing us to avail of new opportunities and take on new challenges,” Gupta says, adding that the plan is to make cryptocurrencies accessible to everyone irrespective of their level of experience in financial markets or level of income.
CoinDCX is one of the six major platforms in India where users can buy and sell Bitcoin in Indian Rupee. Another platform pushing the crypto adoption drive in India is Cashaa, a crypto-friendly banking service provider which started in the UK in 2016 with wallet service that is available in Indian rupee to manage fiat and crypto through one single account.
For Zac Zou, the head of OKEx India, adding more equitable currencies like rupee to the ecosystem will bolster the growth of the Indian economy as one of the largest economies in the world and positively impact both crowdfunding and institutional funding.