Earlier this month, India’s Supreme Court overturned the central bank’s ruling (RBI) that banned all Bitcoin and cryptocurrency trading in the country. As Asia’s third-largest economy, it was perceived as a soaring victory for the countries exchanges.
One of the top crypto-exchanges, Binance, had acquired an Indian cryptocurrency exchange (WazirX) while the ban was still in place, which just recently turned into a promising investment. The story doesn’t end there for Binance as they make yet another move and set up a $50 million (Rs 370 crore) blockchain fund in the country for startups.
The fund will invest in startups working on crypto-to-fiat onramps, trading exchanges, remittance solutions, cryptocurrency wallets, decentralised finance platforms and applications. The chosen projects will likely receive north of $100,000 in funding through the use of Binance’s coin (BNB), WRX tokens and BUSD (Binance’s USD stablecoin).
Binance’s founder and CEO, Changpeng Zhao (CZ), stated: “When our team visited India last year, we saw that the blockchain startups were witnessing tremendous challenges in fundraising and scaling projects to meet growing consumer demands”.
The news can be perceived in a positive light especially due to the timing. The announcement was made only a few days after the cryptocurrency market crashed by -50%. Ongoing investments in the space should, in theory, bring some calm to people that development is not stopping despite the pandemic.