Coinstore Opens Branch In India Despite Strict Rules On Crypto

Government of India, enforce strict rules regarding crypto. (photo; doc. pixabay)

JAKARTA – Singapore-based virtual currency exchange Coinstore has started operations in India at a time when the Indian government is preparing a law to effectively ban most cryptocurrencies from being private.

Coinstore has launched its web and app platforms and is planning new branches in Bangalore, New Delhi and Mumbai that will act as its base in India in its future expansion efforts, its management said as reported by Reuters.

"With nearly a quarter of our total active users coming from India, it made sense for us to expand the market," Charles Tan, head of marketing at Coinstore told Reuters.

When asked about the reasons, why Coinstore opened the market in India despite the pending crackdown on cryptocurrencies, Tan said: "There are policies that are not right, but we hope that everything will turn out to be positive and we are optimistic that the Indian government will come out with a sound framework for cryptocurrencies."

The New Delhi government plans to prevent cryptocurrency trading by imposing a hefty tax on capital gains. This was confirmed by two government sources to Reuters earlier this month.

They state that the rule only allows certain cryptocurrencies to promote the underlying technology and its use, according to the legislative agenda for the winter session that will begin later this month.

Tan said Coinstore plans to recruit around 100 employees in India and spend $20 million on marketing, recruiting, 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 the country in September.

While the price of the world's largest cryptocurrency, Bitcoin, has more than doubled since the start of the year, attracting hordes of Indian investors to invest in it.

Industry estimates suggest there are 15 million to 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees (IDR 86 trillion).

Coinstore also plans to expand into Japan, Korea, Indonesia, and Vietnam, according to Tan.