A leading cryptocurrency exchange platform in India, Alluma has announced that it is planning to launch an initial coin offering (ICO) worth $25 million in the near future. The firm commenced operations last year and has managed to raise about $1 million fund for its activities.
ICOs have significantly become the best alternative for crypto start-ups to raise funds for their operations. According to Akash Aggarwal, Founder and CEO of Alluma, the firm will be ready for an ICO probably in June of July and all the legal procedures and other requirements are being considered including blocking residents from countries that do not support crypto ICOs.
Aggarwal suggested that the government should draft policies that can regulate the cryptocurrencies instead of banning the innovative technology behind them. He further stated that several countries such as Japan, Switzerland, and others have strong policies for the virtual currency markets and legitimate business firms are strictly following the norms just like other industries.
The Reserve Bank of India (RBI) recently opted to ban all the commercial banks and other financial institutions from associating with cryptocurrency firms. However, Aggarwal believes that the country would lose billions of dollars if it bars potential investors to freely conduct business in the country. There are numerous crypto-related firms that are currently eying India as a potential market for their operations.
With increased crypto-related activities in the country, the Indian government can generate more revenues in the form of taxation that can support other developments and initiatives in the country. For instance, the government can formulate a strong policy to ensure that all exchanges report their details on the regulator platform to collect taxes.
The Indian government has not declared that cryptocurrency is an illegal activity. The only problem is that the digital currencies such as Bitcoin (BTC), Ethereum (ETH), and other emerging coins, are increasingly being associated with money laundering and terrorism activities.
India has a huge potential market for growth of digital currencies and though trading in most cryptocurrency is termed speculative, the integration of blockchain technology such as BTC blockchain is the most secure way for a country to realize benefits from the digital world.
Aggarwal also said the majority of Indians trade expansively on international exchanges, and though RBI can cuts its links with the fiat currency, people will definitely continue trading in several currencies without the government gaining anything from the activities. Alluma intends to commence the crypto to crypto trading that will attract people from both local and global exchanges to their platform.