Lagatar24 Desk
New Delhi, Nov.29: A virtual currency exchange situated in Singapore, Coinstore, has launched operations in India at a time when the Indian government is considering legislation that will effectively ban the majority of private cryptocurrencies.
Coinstore has launched its Web and app platforms and plans to open branches in Bangalore, New Delhi, and Mumbai, which will serve as a springboard for future expansion in India, according to the company’s management.
“With India accounting for roughly a quarter of our total active users, it made logical for us to expand into the market,” Charles Tan, Coinstore’s head of marketing, told Reuters.
“There have been policy flip-flops,” Tan said when asked why Coinstore was opening in India despite the impending cryptocurrency crackdown. “We hope things will be positive and we are optimistic that the Indian government will come out with a healthy framework for cryptocurrencies.”
Two sources told Reuters earlier this month that the New Delhi government intends to deter cryptocurrency trade by applying high capital gains and other taxes.
According to a legislative agenda for the upcoming winter session, it has said that only specific cryptocurrencies will be allowed to promote the underlying technology and its applications.
Coinstore wants to hire about 100 people in India and invest $20 million (about Rs. 150 crore) on marketing, hiring, and developing cryptocurrency-related products and services for the Indian market, according to Tan.
Coinstore is the second major exchange to create a local unit in India in recent months, following CrossTower, which did so in September.
Since the beginning of this year, the price of Bitcoin, the world’s largest cryptocurrency, has more than doubled, attracting swarms of Indian investors. As of 10 a.m. IST on November 29, the price of bitcoin in India was Rs. 43.13 lakh.
According to industry estimates, India has 15 million to 20 million crypto investors, with a total crypto market capitalization of roughly Rs. 40,000 crore.
According to Tan, Coinstore has intentions to grow into Japan, Korea, Indonesia, and Vietnam.
