As India’s Crypto Market Boasts Excitement, Retail Investors Are Experimenting With Over-the-Counter Trading
OTC market development is helping Indian investors diversify beyond cryptocurrency investments, which allows for better liquidity and avoidance of wildly volatile market conditions that have made crypto investing so popular. Furthermore, trading OTC allows traders to avoid paying TDS (tax deducted at source).
This represents a dramatic turning point for an industry which had struggled to establish itself due to regulatory uncertainty. Investors had been wary of investing in crypto startups due to concerns regarding taxes, security and overall viability; venture capital firms had avoided funding crypto startups while institutional investors were unclear how best to map their trading activities with existing norms around accounting for long-term capital gains – this led to an underdeveloped crypto market in India.
Now, some leading crypto exchanges are providing over-the-counter trading to their users, enabling them to invest directly in digital assets while taking advantage of increased liquidity. Furthermore, these companies offer various other services including remittances and lending facilities for their customers.
According to experts, India’s OTC crypto market is expanding quickly as more people embrace virtual currencies like bitcoin. This represents an important step towards financial inclusion as more individuals will be able to invest in the sector without going through a cumbersome depositing process at an exchange.
However, while OTC markets may be expanding quickly, they face their own unique set of obstacles such as consumer ignorance and price fluctuation of cryptocurrency investments. Still, experts consider it to be an attractive investment option for many investors.
Nischal Shetty, CEO of WazirX, remains confident that India’s OTC crypto market will expand as more stakeholders push for nuanced cryptocurrency regulations to safeguard rupee monetary sovereignty and to regulate this sector effectively. He expresses optimism regarding an expansion in India’s OTC cryptocurrency market as the government strives to regulate it effectively and address threats it poses to rupee monetary sovereignty.
Meanwhile, the OTC market could help Indian social media and gaming platforms to better meet customer needs by rewarding them for their time, attention and contributions. It also offers them a flexible commercial canvas on which they can promote their products and services. Please be aware that this article serves only for informational purposes and does not constitute financial advice, trading recommendations, or forecasts. NDTV cannot accept responsibility for any losses sustained as a result of perceived recommendations or information provided here. Cryptocurrency is a speculative asset not supported by banks or governments and its value may fluctuate – investors should conduct their own research before making decisions based on this advice.
