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Cryptocurrency adoption is rising in India

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At present, Bitcoin has the same number of users as the internet did in 1999. It paints a pretty clear picture of where we are in terms of the adoption of cryptocurrencies all across the world. While developed countries are certainly ahead in terms of innovation, developing economies have not been left behind. India is one such nation where cryptocurrency adoption is rising at a phenomenal pace.

India ranks no. 2 in the global cryptocurrency adoption index

A report from Chainalysis said that India ranked no 2 in terms of crypto adoption among all nations globally. On the other hand, Finder’s report shows that India ranked no 1 on the same index. This is happening despite the government’s attempt to discourage crypto investment and adoption by levying a 30% and 1% TDS on crypto transactions.

The most popular crypto owned by Indian citizens is Bitcoin, with 29.9% ownership as of April 2022. At no 2, we have Dogecoin, which got really popular this year after Elon Musk hyped it up and is owned by 23% Indians. Other popular cryptocurrencies like Ethereum, Solana, and Ripple are also on the top 10 list.

The current state of crypto in India

According to cryptogorilla.comIt is estimated that 27 million people, 2.0% of India’s total population, currently own cryptocurrency. Considering that India has a population of over 1.4 billion people, it seems to be a pretty small figure. However, things are just getting started, and if the government is a little supportive of regulations, India can lead the way in terms of the mass adoption of crypto.

But it won’t be as easy as Indian banks, and especially the RBI has been pretty restrictive about crypto. India’s FM has also recently warned investors about the current investigations that crypto exchanges like WazirX and Vauld are facing over money laundering and KYC issues.

What can we expect in the future?

India is working on a CBDC (Central Bank Digital currency), which could change the country’s outlook on crypto. Plus, with time, as the crypto market gets bigger and more countries adopt a positive approach towards the sector, Indian authorities cannot simply just sit around.

The most important thing right now is a better tax regime that doesn’t strangle crypto investors. For example, according to the current rules, investors cannot offset losses with profits, and the 30% tax is also a flat rate. This makes trading incredibly difficult, and profit margins get slimmer.

There is also a need for regulatory clarity that allows foreign exchanges and businesses to operate in India. Do you remember when Coinbase came to India and had to pause its operations due to UPI problems? Or when banks were sending notices to customers for transferring funds to crypto exchanges? These things cannot happen anymore, or crypto adoption will be difficult.


India does have the potential to lead crypto adoption globally, with 50% of its population under the age of 25. Millennials have always been more accepting of new technologies, and the same is the case for crypto.



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What is the importance of KYC in cryptocurrency user information security

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By Johnny Liu

As the world increasingly moves towards a digital future, more and more businesses are beginning to adopt cryptocurrency as a form of payment. However, with the rise in popularity of digital currencies comes an increase in the number of scams and frauds being perpetrated against unsuspecting users. In order to protect themselves and their customers, businesses must implement effective know-your-customer (KYC) policies and procedures.

This article will try to bring the concept of KYC verification closer to you, as well as explain the benefits of KYC compliance as a whole. Let’s get into it!

What is KYC?

KYC process is the process of verifying the identity of a customer or client. This can be done through the use of government-issued identification documents, such as a passport or driver’s license, or by other means, such as utility bills or bank statements. The goal of KYC is to ensure that the customer or client is who they say they are, and to prevent money laundering and other illicit activities.

What Are the Benefits of KYC?

There are many benefits to crypto firms implementing KYC policies and procedures, both for businesses and customers or clients.

From a business perspective, implementing KYC processes can help crypto companies by protecting them against fraud and money laundering. This is especially important in crypto, where scams are not that rare. It can also help businesses to build trust with their customers or clients, as it shows that the business is taking steps to verify the identity of those who are using its services.

From a customer or client perspective, know-your-customer can help protect their crypto assets against fraud. It can also make it easier for customers or clients to do business with a company, as they will not need to provide their personal information each time they interact with the company.

What Are the Risks of Not Implementing KYC?

There are several risks associated with not implementing KYC regulations in the crypto world.

Financial Crime Risk

First, crypto firms that do not verify the identity of their customers or clients run the risk of being used for money laundering or other illegal activities. This could lead to criminal charges being brought against the business, as well as reputational damage.

Scams and Fraud Risk

Second, businesses that do not verify the identity of their customers or clients run the risk of being taken advantage of by scammers and fraudsters. This could lead to financial losses for the business, as well as damage to its reputation.

Failing to Establish Trust

Third, businesses that do not verify the identity of their customers or clients may have difficulty building trust with their customers or clients. This could lead to a loss of business, as customers or clients may take their business elsewhere.

Overall, it is important for businesses to carefully consider the risks and benefits of KYC before deciding whether or not to implement such policies and procedures.

Reduced Functionality and Lower Limits

Most crypto firms entice users into completing the KYC procedure by enabling additional functionalities or increasing withdrawal limits once the procedure is complete. Therefore, if the KYC is not complete, users may suffer from certain platform-induced limitations.

What Does KYC Mean for Crypto Exchanges?

Cryptocurrency exchanges are businesses that allow customers to buy and sell cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. In order to comply with anti-money laundering (AML) and countering-the-financing-of-terrorism (CFT) regulations, crypto exchanges must implement know-your-customer (KYC) policies and procedures.

KYC requirements do not apply to decentralized exchanges (DEXs), which organize trades through smart contracts instead of a central trading desk. Therefore, users are not required to disclose their identities. However, centralized exchanges are regarded as financial institutions, and, therefore, must comply with financial regulations if they want to conduct business in certain countries.

You Shouldn’t be Afraid of KYC

Even though it may seem like a hassle, you shouldn’t be afraid of KYC. It is important to remember that KYC is designed to protect you, as well as the businesses that you do business with – especially when you are dealing with an industry as vulnerable as crypto. When implemented properly, KYC can help prevent fraud and money laundering, and can also make it easier for you to do business with a company.

If you are asked to provide your personal information to a company, you should make sure that the company is legitimate and that you feel comfortable providing your information. You should also make sure that you understand how the company will use your information, and what steps they will take to protect it.

Why Does Crypto Need KYC?

Cryptocurrency exchanges, as well as other non-decentralized entities in the space, are subject to the similar AML and CFT regulations as traditional financial institutions. As such, they must take steps to prevent their services from being used for money laundering or other illegal activities.

One of the most effective ways to do this is to implement proper regulatory compliance. By collecting certain identifying information from their customers, exchanges can screen out those who may be attempting to use the exchange for illegal purposes.

In addition, KYC can help to build trust between an exchange and its customers. By showing that it is taking steps to verify the identity of its users, an exchange can create a sense of safety and security that may attract new customers.

Final Word

Overall, KYC is an important tool that can help create a safer and more secure business environment. However, businesses must carefully consider the risks and benefits of KYC before deciding whether or not to implement such policies and procedures.

The author is CEO, KuCoin exchange

Also Read: Japan might ease tax burdens on cryptocurrency startups in 2023

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Bitcoin and Ethereum Down, QLC Chain (QLC) Most Trending Crypto

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The global crypto market was trading with losses this morning. The most trending coin today was QLC Chain (QLC), and the top gainer was Chiliz (CHZ) for the second consecutive day.

The global crypto market capitalization went down by 0.63 percent to $1.02 trillion as of 8.50 am. The global crypto volume was down by 0.29 percent to $70.46 billion, according to Coinmarketcap data.

The trading volume in the decentralized finance coins section is about $5.35 billion, or 7.59 percent of the total crypto market 24-hour volume. The volume of all stable coins is $64.31 billion, or about 91.28 percent of the total crypto market volume in the last 24 hours.
Today’s top gainer was Chiliz, which was up by 11.55 percent at $0.2496. The top loser was Celsius (CEL), which was down by 13.87 percent at $1.49.

Cryptocurrency Prices

Bitcoin

Bitcoin fell 0.7 percent to $21,204.44.

Regarding price analysis, BTC’s price made the trend reversal sometime around 1.39 pm on August 23 by jumping in the green territory and above the $21,300 level. From here on, it was a volatile trading session with wild price swings, but the price was never too low to be in the red territory. However, after around 7.14 am on August 24, BTC’s price came straight into the red territory and is, hence, trading near its day’s low with losses.

The lowest price for BTC today was $20,955.14 and its trading volume was up by 0.21 percent at $32,226,521,120.

Ethereum

The price of Ethereum this morning was $1,617.06, which is a loss of 0.78 percent in the last 24 hours.

Like BTC, ETH too managed to break out from the red territory to trade with gains sometime around 7.14 pm on August 23. With each passing hour since then ETH made new highs, but ultimately succumbed to selling pressure and fell right into the red territory sometime around 7.59 am on August 24.


The lowest price for ETH today was $1,569.43. ETH’s trading volume was up by 0.21 percent at $18,655,445,443.

Other Altcoins

Solana’s price was down by 0.95 percent at $34.83 today.

Cardano (ADA) fell 1.07 percent to $0.4553. The 24-hour trading volume for ADA decreased by 20.65 percent to $575,486,546.

Binance (BNB) was down by 0.66 percent at $295.93. Its 24-hour trading volume was down by 31 percent at $1,004,771,727.

Meme Coins

Dogecoin (DOGE) was down by 1.69 percent at $0.06746. Its 24-hour trading volume was down by 25.74 percent at $337,941,784.

Shiba Inu (SHIB) was down by 0.74 percent at $0.00001309.

Decentralized Finance (DeFi)

Yearn.Finance (YFI) fell 1.84 percent to $9,102.51. Its 24-hour trading volume was up by 12.61 percent at $218,533,533.

Avalanche (AVAX) was up by 0.84 percent at $22.99 and its 24-hour trading volume was up by 17.89 percent at $432,047,531.

Aave (AAVE) was trading with a loss of 1.99 percent at $87.27 and its 24-hour trading volume was up by 12.72 percent at $219,109,577.

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