Bitcoin prices traded at 13,000 $ (approx. 839085.00 Rupees) in India for all time high which is approx. 30% higher than the US bitcoin price. As per the leading exchanges in India, the higher demand and lower supply is causing the premium prices of bitcoin. There aren’t enough mining companies in India even with the increased demand of bitcoin and the customers are end up paying more.
Some of the popular exchanges in India like Zebpay, Coinsecure and Unocoin have received increased requests for bitcoin purchases as the demand keeps increasing. Like any other parts of the world the number of people who are signing up for exchanges have been increasing exponentially and the demand has created a price increase.
Indian government is neutral on cryptocurrency and have repeatedly said that the government is not comfortable with the bitcoin trend and asked investors to be aware of the risk before investing their hard earned money. However all exchanges are required to maintain all transactions digitally and keep an online trail when fiat currency is transferred to exchanges to obtain digital currency to prevent any fraud or illegal operations.
India’s Chief Minister Mr. Modi has been fighting a hard battle with mass demonetization early this year which shook Indian economy as headlined in the New York Times. Recent news from The Times of India even have explained how it helped curd illegal money by 85% in India making it a huge success. With such drastic actions by the Indian government they definitely would want to have accountability on all the cryptocurrency transactions to control fraud in the cash economy.
Indian government has considered cryptocurrency as a way to help its citizens in the past with the digital revolution however it’s unsure at this point since there are no real time use cases where it can be help the needy. Recently finance minister also considered banning all cryptocurrency however that didn’t happen and India is keep its views as neutral allowing bitcoin exchanges to operate as long they keep proper trial of all transactions to prevent any money frauds.