- The Indian Rupee fell to ₹91.9650 against one US Dollar.
- Additional factors possibly affecting the nation’s crypto market are revisions in rules and BitConnect-related arrests.
- India remains the top adopter of cryptocurrency.
The Indian Rupee (₹) just hit a new low against the US dollar ($), triggering anticipation if the Indian crypto market will feel the heat. The central bank has stepped in 2 times but the national currency continues to note depreciation at the moment. Nevertheless, India remains the top adopter of cryptocurrency according to a report by Chainalysis.
Indian Rupee and US Dollar
The Indian Rupee is inching closer to the ₹92 mark after the latest fall to ₹91.9650. It has marked the steepest weekly decline in 6 months on two grounds, namely sustained foreign outflows and hedging by importers, per a report by Reuters.
India’s central bank, that is the Reserve Bank of India (RBI), has attempted two shots to control the fall. One was through the selling of USD in the spot market and the other was conducting the buy-sell swap to manage liquidity. The Indian currency was last seen exchanging at ₹91.8760 against a single US Dollar.
Factors Influencing Indian Crypto Market
The crypto market of India, that is Bharat, is growing nonetheless. A recent report by Chainalysis has placed the country at the top in overall index rating, followed by the US and Pakistan in the second and third positions, respectively.
Recent incidents that may have some influence on the crypto segment are the arrest of two people in connection with BitConnect crypto fraud and the rules being tightened around the industry.
The Enforcement Directorate (ED) recently arrested two people after they were found linked to a multi-crore fraud. Key accused arrested are Shailesh Babulal Bhatt, Nikunj Pravinbhai Bhatt, and Sanjay Kanubhai Kotadia. They are now in a 4-day custodial remand as per the direction of the PMLA court.
India is working to tighten its rules around the crypto segment to prevent money laundering and terror financing. VDA service providers have been asked to implement more stringent identity verification rules. This includes verification via live selfie and additional documents. Registration with the Financial Intelligence Unit remains non-negotiable to operate in the country.
These factors are likely to have some impact on the overall operations of the crypto market in India. It could be in terms of adoption of investors’ confidence, and could serve as an additional component to the ongoing currency decline.
Crypto in India
A broader review of the report by Chainalysis underlines that India stands at the top in all five categories. The US, on the other hand, stands on the 10 position when it comes to “retail centralized service value received ranking.” For reference, Pakistan and Vietnam are in the 2nd and 3rd position in that category, respectively.
The Indian crypto industry is now seeking relief in the country’s upcoming budget that is slated to be announced on February 01, 2026. The request mainly seeks a reduction in the TDS and normalization of the tax rate.
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