Coinstore cryptocurrency exchange enters India despite pending restrictions on trading

New Delhi: Singapore-based virtual currency exchange Coinstore has commenced operations in India at a time when the Indian government is preparing legislation to effectively ban most private cryptocurrencies.

Coinstore has launched its web and app platform and plans to have branches in Bangalore, New Delhi and Mumbai that will serve as its base in India for future expansion, its management said.

“With almost a quarter of our total active users coming from India, it makes sense for us to expand into the market,” Charles Tan, head of marketing at Coinstore, told Reuters.

Asked why Coinstore India was launching despite the pending clampdown on the cryptocurrency, Tan said: “There have been policy changes, but we expect things to turn positive and we are optimistic that the Indian government is going to take a stand for cryptocurrencies. Will come with a healthy framework.”

Two sources told Reuters earlier this month that the New Delhi government plans to discourage trading in cryptocurrencies by imposing heavy capital gains and other taxes.

According to the legislative agenda for the winter session that begins later this month, it has said that it will only allow certain cryptocurrencies to promote the underlying technology and its use.

Tan said Coinstore plans to recruit about 100 employees in India and spend $20 million on marketing, hiring and developing crypto-related products and services for the Indian market.

Coinstore is the second global exchange to enter India in recent months, following in the footsteps of Crosstower which launched its local unit in September.

The world’s largest cryptocurrency, bitcoin, has more than doubled in price since the beginning of this year, attracting hordes of Indian investors.

The industry estimates that there are 15 million to 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees ($5.33 billion). Read also: BGMI Update: Crafton introduces 3-hour playtime limit, check other restrictions

According to Tan, Coinstore also plans to expand to Japan, Korea, Indonesia, and Vietnam. Read also: Microsoft’s GitHub is facing a major blockage! Service back online after 2 hours of interruption

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