Xiaomi wants regulatory clarity before venturing into crypto in India

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What happened: Electronics multinational Xiaomi Corp (OTC: XIACF) is set to expand its financial services business to include cryptocurrency, but only after the regulatory environment is clear.

Manu Kumar Jain, chief executive of Xiaomi India, told The Economic Times that the company’s financial services business would only venture into crypto after it better understood how to comply with local laws in India.

“We will want to wait for all regulatory things. Of course, crypto is an extremely interesting area, the biggest buzzword, and one that is doing exceptionally well. But, we would like to understand better on the regulatory side, ”he said.

Why it matters: Xiaomi’s financial services business grew 95% in the first three months of the year, compared to the last three months of 2020.

In fact, the business now includes a full spectrum of payment, loan and insurance verticals. The lending platform also facilitates business loans and is expected to launch gold loans in the near future.

According to Jain, the company is now so large that it can no longer be considered a subset of Xiaomi’s internet service business.

“It’s not a subset anymore because it’s big enough, is it. In Hong Kong, India and China in various other places, it is big enough to be an independent company, ”he said.

Meanwhile, the adoption of crypto in India has steadily increased. India ranked third in Finder’s list of countries with the highest adoption rate.

Finder’s report found that 30% of the country’s citizens own cryptocurrency. However, at the time of writing, the Official Cryptocurrency and Digital Currency Regulation Bill 2019 is still awaiting approval to be presented to Parliament.

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