Despite its diversification into a full spectrum lending platform, Xiaomi India still does not offer cryptocurrencies at this time.
The lending business of the Chinese cellphone maker operating in the subcontinent, which started as part of its internet service business, will clearly focus on the payments, lending and insurance verticals. The company is now launching it as an independent business due to the size of the market and its renewed focus.
Business grew 95% for Xiaomi’s financial services business in the January-March quarter, compared to October-December 2020. Manu Kumar Jain, Managing Director of Xiaomi India, lamented that the gain was due to a dismal previous performance due to COVID. However, despite this hurdle, Jain pointed out that this month’s figure shows growth at a “significant rate.”
No crypto for now
However, despite their popularity, when it comes to cryptocurrencies, Jain, Managing Director of Xiaomi India, is still hesitant. âOf course, crypto is an extremely interesting area, the biggest buzzword and doing exceptionally well,â he said. “But, we would like to understand better on the regulatory side.”
When it comes to startup investments, Jain recognized new regulations that require certain approvals to make an investment. He stressed the need for 100% compliance with all local laws at all levels. As a result, Jain concluded that there was no immediate plan for crypto investments.
Crypto in India
Xiaomi’s reluctance to engage in crypto trading in the Indian payments and lending markets is understandable. Currently, the status of cryptocurrencies is unclear from an official policy perspective. In 2018, the Reserve Bank of India banned financial institutions from engaging with cryptocurrency-related businesses. This ban was overturned by the Indian Supreme Court in the spring of last year. However, policymakers have drafted legislation banning private coins, while some question whether they should do so with all cryptocurrencies.
Amid this indecision, the crypto market in the South Asian subcontinent continues to thrive. Although there are no official figures, industry sources estimate that there are 15 million crypto investors in India. These 15 million hold an amount of more than 100 billion rupees (1.37 billion dollars). Meanwhile, the four largest crypto exchanges in India saw their daily transaction volumes jump from $ 28.6 million a year ago to $ 159 million, according to CoinGecko.
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