Zebpay, a digital currency wallet and exchange provider that began its relaunch in India earlier this year, will be working with blockchain security and analysis firm Chainalysis to monitor crypto-asset transactions performed across its platforms for Indian consumers.
Chainalysis had already been providing its Know Your Transaction (KYT) services to ZebPay for its business in Singapore.
Chainalysis will now offer real-time alerts to ZebPay if and where there’s any suspicious activity involving high-risk transactions across its digital asset trading services in India.
In March 2020, the Supreme Court of India struck down the Reserve Bank of India’s (RBI) ban on cryptocurrency-related businesses and transactions. The RBI had instructed local financial institutions to not offer banking services to individuals and companies dealing in crypto assets.
Jason Bonds, chief revenue officer at Chainalysis, says there’s still a lot of work that needs to be done before India can develop a comprehensive set of regulations for digital currencies.
Chainalysis believes that India is an ideal location for cryptocurrency adoption which would also require a supportive compliance and regulatory framework that the blockchain security firm could help develop.
A report from Coinpaprika and OKEx claims that India’s global market share of digital asset transactions could increase significantly over the next few years as more of the nation’s residents try to gain access to modern financial services.
The report noted progressive regulations must be formulated, which won’t stifle innovation. It adds that remittance payments should become cheaper, and it should also become easier to access foreign exchange markets from India – so that the country’s financial system can become more inclusive.
Digital currency exchange OKEx reports that India’s traffic has surged by around 550%, after the RBI’s ban was reversed by the Supreme Court. New sign-ups from India via OKEx have reportedly increased by over 4,000% during the first quarter of this year.