Singapore-based crypto exchange Coinstore has entered the Indian market despite the regulatory wrangle that points toward an impending ban on all private cryptocurrencies, the company announced today.
Fast facts
- Coinstore has launched its website and mobile application for Indian users and plans to set up offices in Bangalore, Delhi, and Mumbai that will support its further expansion into the country, a press release said. The exchange is looking to hire 100 new employees for its India operations and has allocated US$120 million for its expansion in India.
- Over 20% of active Coinstore users are from India, making the move a logical one, said Jennifer Lu, co-founder of Coinstore. Coinstore first launched its app for global customers in June this year. It is the third foreign exchange to enter the Indian market — Binance entered India in 2019 by acquiring WazirX and CrossTower opened offices in the country earlier this year. Coinstore will soon offer a ‘copy trading’ feature for Indian users, allowing them to follow the moves of other successful traders.
- Coinstore’s move to India comes at a time where the country is at the brink of introducing legislation to ban all cryptocurrencies. The crypto bill’s objective is to “prohibit all private cryptocurrencies” in the country, according to the parliamentary agenda. The bill is listed for discussion in the parliamentary session that started today. In response to a question at the parliamentary session, the Finance Ministry said: “The government does not collect data on Bitcoin transactions. The government has no proposal to recognise Bitcoin as a currency.” This is in line with the central bank and the finance ministry’s earlier views that cryptocurrencies cannot be provided legal tender status. However, it remains to be seen if any cryptocurrencies will be allowed for trading, even though they might not be allowed for payments. The crypto bill is yet to be made public.
- While India’s crypto community has been on edge for some time and began panic selling last week as Bitcoin and Ethereum prices crashed by 24%, Coinstore’s move suggests that it is still optimistic of a positive regulation.