Over the past year, an increasing number of industrialized nations have enacted regulation aimed at protecting consumers and enabling investors to benefit from the digital currency revolution. While cryptocurrencies exist in a grey area in many locales, some countries have set comprehensive guidelines on paying taxes on income generated through digital assets.
Though many people in the US & Europe are slowly getting used to the idea that inflation may be creeping above the central-bank target of 2%, countries like Argentina and India are battling much higher inflation rates.
When inflation is high, people look for alternative stores of value, and recently, the most popular alternative store of value has been Bitcoin, with many purchasing the digital currency through cryptocurrency exchanges.
In India, Wazir X is the biggest exchange by trading volume. Though it has become the go-to venue for Indian traders to buy and sell their assets, the country’s changing stances and ban on cryptocurrencies have complicated the pathway to widespread adoption.
Wazir X and the Cryptocurrency Ban
The Indian government has always expressed varying levels of hostility to the crypto industry. When interest and transaction volumes picked up in 2018 after the ICO bubble, the Reserve Bank of India banned cryptocurrencies for a period of 2 years.
At the time the ban began, Wazir X had been around for roughly a year. The exchange was founded by visionaries, including Nishal Shetty, known for making the Forbes under 30 most influential entrepreneurs list as the founder of the Crowdfire Marketing bot. While the team initially launched Wazir X to be purely an exchange, once the RBI started criticizing cryptocurrencies for their lack of intrinsic value, they decided to launch a new product to continue serving customers despite regulatory pressure.
Instead of sitting on the sidelines during the ban, Wazir X launched a peer-to-peer exchange on which users can trade in and out of crypto by using USDT. On this p2p platform, users could buy into crypto by purchasing USDT directly from other peers and then using the stablecoin to purchase other cryptocurrencies. The exact process is repeated vice versa to cash out of crypto.
On the platform, buyers and sellers are automatically matched, and funds are put into escrow until all details are agreed upon. With the introduction of a new matching engine, confirmation times were cut by 75% enabling most trades to be completed within 15 minutes. Upgrading the matching engine reduced risk for both parties as time funds are locked in escrow was reduced.
This p2p platform saved WazirX from going bankrupt during India’s cryptocurrency ban. Their proactive approach in dealing with regulations and entrepreneurial spirit helped them master uncertainty. In 2020, when the ban was lifted, they came out as the biggest and most trusted exchange in India. Binance took notice and bought the exchange in November 2019. The peer-to-peer engine is now integrated with Binance’s fiat gateway, allowing traders to buy cryptocurrencies directly with their country’s fiat currency.
Smart Token Fund
While most of the features WazirX offers are similar to all other exchanges, boasting an advanced trading interface, automatic order book matching, and fast executions, one feature worth noting is their innovative Smart Token Fund.
The Smart Token Fund (STF) brings together traders with experience and skills in managing crypto portfolios with traders who either don’t have the time or confidence to be trading actively. Traders that want to let users trade their crypto can buy a smart token and pass their portfolio to an STF trader to manage it.
The STF trader will then actively manage the portfolio, and as it increases in value, so does the smart token. Traders can then sell the smart token and secure profits. To guarantee peace of mind to investors, STF traders can only trade the portfolios. Still, they can’t withdraw cryptocurrency from it, which creates a safe environment to bring investors and skilled traders together.
WazirX Token WRX
After Binance acquired WazirX, the Wazir X team launched their own exchange token on the Binance Smart Chain. The WRX token is used to pay for trading fees. When using WRX to pay for transactions, traders benefit from discounts.
The WRX token has recently gained more interest by crypto-traders as the price went up from $0.07 at the beginning of 2021 to an all-time high of $3.50 in early April. Currently, it’s trading around $2.36.
While it remains uncertain how the Indian government is going to regulate cryptocurrencies in the future, the WazirX team has already proven once that they can cope with uncertainty. India remains one of the world’s biggest cryptocurrency markets.