Coinstore has opened up an exchange in India even though the government is trying to ban all private cryptos.
Singaporean cryptocurrency exchange Coinstore has commenced operations in India, amidst rumors of new legislation that would effectively ban all types of virtual currencies.
Coinstore has just launched its web and app platform and is setting up branches in Mumbai and New Delhi so that it has a solid base for future expansion. The company’s management said
“With nearly ¼ of our total active users coming from India, it made sense for us to expand into the market,” Charles Tan, head of marketing at Coinstore told Reuters.
When asked why Coinstore has chosen to expand to India with their latest product, Mr Tan said that there have been some policy changes, but they expect things will be positive overall. They are optimistic that the Indian government will come out with a more doable and transparent crypto regulation soon.
The government is planning to discourage cryptocurrency trading by imposing hefty taxes, which was earlier reported by Reuters.
It has said that only certain cryptocurrencies will be allowed to promote the underlying technology and its uses, according to an agenda for the winter session that is set to start later this month.
Mr Tan has mentioned plans to recruit 100 employees in India and allocate $20 million for marketing, hiring and developing crypto-product/services for the Indian market
The latest foreign company to enter India is Coinstore, the second one in the last few months. It was founded by Varun Deshpandé and Sofya Ivanova, both of whom met while studying at Stanford
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Estimates show there are 15-20 million Indian cryptocurrency investors with total holdings of approximately $5.33 billion.
Coinstore plans to expand into Japanese, Korean, Indonesian and Vietnamese markets soon.