India's Supreme Court has overturned a ban on trading platforms for fiat money.

Interest in cryptographic derivatives is growing in India, according to BlockBeats. But today, the Supreme Court of India overturned the ban on the exchange of legal notes issued by the country's central bank.

Sumit Gupta, chief executive of CoinDCX, said: "[in early 2020] we saw huge demand for futures trading from encrypted users in India." The founder of Unocoin, an Indian trading platform that has been embroiled in a regulatory case over the channel of fiat money since 2018, has a similar view. 'we think it's almost time to launch the derivatives market, but the restrictions are still in place,' said Sathvik Vishwanath, Unocoin's co-founder.

Vishwanath said the platform still has 26, 000 active users a month in India and that it plans to launch derivatives options in the coming months. Similarly, Pankaj Balani, Delta's chief executive, says his team in mumbai is committed to expanding the supply of derivatives by 2020, thanks to his experience trading derivatives for Union Bank of Switzerland before setting up the crypto platform in 2018. Indeed, this week Delta launched fancy new bitcoin and ether options that allow users to make leveraged bets on the price of cryptocurrencies.

"We found that derivatives were one of the underpenetrated areas of cryptography," Balani said. "If you look at daily foreign exchange trading... derivatives are four to five times the size of the spot market, but in terms of encryption, they are nowhere near large enough." The biggest challenge for derivatives platforms, he adds, is scaling up. Balani's co-founder, Saurabh Goyal, was formerly the engineering director of Indian video streaming platform Hotstar, which typically handles more than 20 million simultaneous viewers of sports and other live events.

However, it is not just local start-ups that have noticed India's growing demand for cryptocurrency trading options. In November, global trading platform giant coon bought WazirX, India's leading digital asset platform. WazirX's founder, Nischal Shetty, has also been working on behalf of India's cryptocurrency market, petitioning India's Supreme Court to overturn the central bank's ban on Banks providing services to cryptocurrency trading platforms.

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In fact, Kumar Gaurav, the chief executive of the blockchain startup Cashaa, says his online banking platform is now seeing a more than 150% increase in encryption activity per month. Cashaa enables instant flow between fiat and cryptocurrency. He estimates that these Indian clients are involved in up to 1,000 bitcoin transactions a day, mainly from over-the-counter trading platforms seeking a piece of the cryptographic derivatives boom nearby.

"I expect this trend to continue and expect strong demand for encryption in India by 2020," Gaurav said. "Before the regulatory hurdles, Indian exchanges were trading $50m - $60m a day and we can expect that to pick up soon."

Given the lack of clarity on India's regulatory requirements for cryptographic trading platforms, Delta founder Balani said his platform would focus on users who want to "hedge their portfolio volatility" through large-scale derivatives trading.

Established trading platforms such as familiar trading platform OKEx are also looking to expand their derivatives businesses. Lennix Lai, head of financial markets at OKEx, said derivatives now account for nearly 66 percent of the platform's daily global trading volume, with options alone accounting for more than $2 billion. I believe there is still room for growth in the [cryptoderivatives] market... "It could go up another 10-20 percent, "Lennix said. In fact, CoinDCX officials say their platform has seen huge demand for cryptographic derivatives since working with OKEx.

So far, the efforts of India's major trading platforms have not been in vain, with the country's Supreme Court ruling striking down the central bank's ban on encryption in 2018 as unconstitutional, blockbeat reported today. Whether India encryption market ushered in the dawn, worth looking forward to.

Reference articles:https://www.coindesk.com/indias-appetite-for-crypto-derivatives-is-growing-exchanges-say

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