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Despite the regulatory uncertainty over crypto currency exchanges in India, Delhi-based Plutoexchange has begun operations.
According to Bharat Verma, Founder and CEO, Plutoexchange, the platform – which provides electronic crypto exchange services – has begun transactions with 900-odd accounts (users) and is planning to take the number up to 50 lakh over the next one year.
Transactions begin
The platform accepts cryptos such as Bitcoin, Litecoin, Ethereum, Dash, and Bitcoin Cash. Plutoexchange will levy a transaction fee. “We have begun transactions with some 900-odd user accounts. We are hopeful of adding 50 lakh accounts by the end of one year,” he told BusinessLine .
Apart from providing crypto-to-crypto exchange, Plutoexchange will also provide pier-to-pier exchange (bank to exchange).
A crypto or bitcoin exchange operates like a traditional stock exchange, where traders can opt to buy and sell bitcoins by inputting either a market order or a limit order.
When a market order is selected, the trader is authorising the exchange to trade his coins for the best available price.
With the launch, Plutoexchange will join a list of crypto exchanges based out of India, that include Poloneix, Bitrex, Binance, Coinbase, Zebpay and so on. According to market sources, some of these exchanges have their own crypto wallets.
Altogether, Indian crypto exchanges transact 10,000 coins daily, which roughly account for one per cent of the global transaction volume.
Govt regulations
“Prospects for a new exchange are good as long as the government, RBI and SEBI supply necessary regulatory certainty,” said Avimukt Dar, Partner, IndusLaw. Plutoexchange’s Verma is all in favour of government regulations of crypto-exchanges. “We support the use of mandatory KYCs for user and so on,” he said.
The Digital Asset and Blockchain Federation of India (DABFI) – as association of crypto-exchanges – points out that the Indian market holds a lot of potential for crypto economy.
“At present, India crypto market is raw compared to the economy size. I see so many opportunities and scope till it reaches mainstream users,” Rashmit Gupta, Founding Member, DABFI, said.
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