I had bought a domain a long time ago thinking I would start crypto related e-commerce website specifically for India. Always, found the counter argument on why it wouldn't work as one could just use fiat and avoid the transaction fees etc. Do you think there's any scope for crypto e-commerce in India? India sees a huge share in trading volume when it comes to crypto but I feel a large share of it is to just HODL or just trade it like stocks. Would you like to buy goods with your crypto?
Even though most of the Indians use cryptocurrencies as investment, the fact is irrelevant here. The more important question is how would you lure people to pay with cryptocurrencies instead of rupee. The one and only way I could think of is providing items at highly discounted prices.
The one way of making that possible is by using market volatility. If it is possible for you to leverage the market volatility in your favor and sell the crypto received from customers at higher prices then you can tie up with one of the leading Indian Exchange and provide instant crypto purchase option right into your website. This way, you wouldn't even have to face the transaction fees. But you will need the team of highly specialize traders to channelize the funds in the market to generate higher returns in order to cover discounted prices and of course, there is always the risk of trading losses.
Another way to provide items at discounted price is by exploiting the lack of regulations. Since, you are dealing in crypto, there are several taxes and regulations you needn't worry as of now. You can use tax savings to provide goods at cheaper price. In order to cover the market volatility, you may use forward contract with expiration and needn't worry about sudden fall or rise in crypto values. But of course, there will be many risks, you would have to keep business activities below radar and may face government intervention at any time.
I don't think so it will work. As it is neither legal nor illegal right now and rumors were Government is thinking about passing laws in the parliament regarding it's ban.
Moreover, as it is decentralized so government would never allow it to work in that large sector . It will unfortunately end in dark web.
Although, the news isn't in media yet but I have received the update that Finance Ministry is going to announce initial set of crypto regulations in Budget speech on 1st February. Government was seeking the suggestions on this from notable people involved in crypto economy in India and few of my contacts were asked too. The regulations will also include the clear taxation guidelines and tax rates. Cryptocurrencies aren't going to be banned in India.
