Cryptocurrency Exchange Coinstore Enters India Despite Impending Trade Restrictions

By Nupur Anand

MUMBAI (Reuters) – Singapore-based virtual currency exchange Coinstore has started operations in India as the Indian government is preparing legislation to effectively block most private cryptocurrencies.

Coinstore has launched its web and app platform and plans locations in Bangalore, New Delhi and Mumbai, which will serve as a base in India for future expansion, management said.

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

Asked why Coinstore launched India despite its forthcoming approach to cryptocurrencies, Tan said, “There have been policy flip-flops, but we hope things will be positive and we are optimistic that the Indian government will come up with a healthy framework for cryptocurrencies. . “

The New Delhi government plans to discourage trading in cryptocurrencies by imposing hefty capital gains and other taxes, two sources told Reuters earlier this month.

It has said it will only allow certain cryptocurrencies to promote the underlying technology and its uses, according to a winter session legislative agenda set to kick off later this month.

Tan said Coinstore plans to recruit about 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 September.

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

According to industry estimates, there are 15 million to 20 million crypto investors in India, totaling about 400 billion rupees ($5.33 billion).

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

($1 = 75,0400 Indian Rupees)

(Reporting by Nupur Anand; Editing by Mark Heinrich)