A representation of the virtual cryptocurrency Bitcoin is seen in this photo illustration taken on October 19, 2021. REUTERS / Edgar Su / File Photo
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MUMBAI, Nov 28 (Reuters) - Singapore-based virtual currency exchange house Coinstore has started operating 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 branches in Bangalore, New Delhi and Mumbai that will act as its base in India for future expansion, its administration 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, head of marketing at Coinstore, told Reuters.
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When asked why Coinstore was launching India despite the pending crypto crackdown, Tan said: "There have been policy changes, but we hope things are positive and we are optimistic that the Indian government will come out with a healthy framework. for cryptocurrencies.. "
The New Delhi government plans to discourage cryptocurrency trading by imposing heavy capital gains and other taxes, two sources told Reuters earlier this month. read more
It has said that it will allow only certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda for the winter session that begins later this month. read more
Tan said that Coinstore plans to hire 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.
Industry estimates suggest that there are between 15 and 20 million cryptocurrency investors in India, with a total crypto holding of around 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)
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Report of Nupur Anand; Editing by Mark Heinrich
Our Standards: The Thomson Reuters Trust Principles.
