Sunday, February 5, 2023

Number of Users On Zerodha Are Less Than That Of Crypto Exchanges: Report

Zerodha, the largest stock trading company in India, has been surpassed by several Indian crypto exchanges, in terms of the number of users on the platform.

The report states that there are over 7 million users, who have joined the Zerodha platform, but out of them, around 5 million are active users. 

As per Ashish Singhal, the CEO of CoinSwitch Kuber, has recently mentioned that the userbase of his company is 11 million. 

WazirX, one of the largest crypto exchanges in India, has a userbase of 8.5 million, claimed its spokesperson.

In order to verify the userbase of stockbrokers, the data has been sent to the exchanges like National Stock Exchange and BSE.

A report published yesterday specified that CoinSwitch Kuber is now the second Indian crypto unicorn. The company raised more than $260 million in a Series C funding round which was led by a16z and Coinbase Ventures.

Recently BSE released a report stating that there are 80 million unique client codes (UCCs) registered on its platform. 

Notably, the individuals can register themselves for multiple UCCs by open their accounts with multiple brokers.

“People tend to open accounts on different crypto exchanges because not all exchanges list an identical universe of tokens. Also, they may wish to shift from one exchange to another for liquity or trust reasons. For these reasons, there is a degree of overlapp in the numbers for crypto exchanges but this is also true for stockbrokers,” said Ajeeth Khurana, founder, Genezis Network, a crypto industry thinktank. 

Some of the reports claim that as the year 2021 started there were around 15 million Indian crypto investors, however now, this estimate is likely to have surged up.

A month ago, Nithin Kamath, the founder of Zerodha, in his tweet mentioned that the crypto trading platforms have the ability to disrupt brokers and exchanges.

Kamath tweeted, “Crypto is what has recently disrupted brokers & exchanges in the US. The AUM of Coinbase is $180 billion, and the crypto AUM of Robinhood Crypto is around $11.5bil. Many incumbents couldn’t react quickly, fearing regulatory lash back and mostly missed the bus.”

He further stated that even though the Indian crypto industry is not as big as the US, but presently it is in the same kind of situation, in which the US was once. 

The regulated platforms are under pressure of regulations therefore, they could not offer cryptos and if this continues traders could move away and disrupt the broking industry. 

The Indian Government planned to table private cryptos banning bill in the Parliament, during a Budget Session in February 2021, but that could not happen. Presently, no one knows what is the legal status of cryptos in India, in order to clear the doubts of the individuals the cabinet needs to approve the bill.

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