I did searched on how the crypto exchange works, However I do not find the exact answer to my questions.
Let's assume we are talking about two exchanges - Exchange A - USA based, local (i.e. users kyc based on US identity card like SSN). Exchange B - Indian based, (i.e. users kyc based on indian identity card like Adhaar)
So Exchange A will have only US users and B will have only Indian users. Now if US people are believing that bitcoin price will rise and purchase a lot of bitcoin and price increases by some %, how it will affect the price in exchange B? As 90% of Exchange B users will be sleeping and will not know that price on exchange A is increasing, how it will relate?
Will any user on Exchange B ever be able to purchase bitcoin from any user of exchange A??
The above scenario also make me question how will the very first user of exchange B will buy and from whom will it buy the bitcoin
Edit --- As one of the answer suggested that Binance.com accepts, I know about binance. My question is not understood properly here.
Let's take example of newly formed exchange, and exchanges here in India, which accepts only Indian ID card.
How price increase at bianance will affect price at some less known new local exchange?