Coinstore cryptocurrency exchange enters India despite ongoing restrictions on trade

A representation of the Bitcoin virtual cryptocurrency can be seen in this photo illustration taken on October 19, 2021. REUTERS / Edgar Su / File Photo

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MUMBAI, Nov.28 (Reuters) – Coinstore, a Singapore-based virtual currency exchange office, has started operations in India at a time when the Indian government is preparing legislation to effectively ban most private cryptocurrencies.

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

“With almost a quarter of our total active users coming from India, it made sense for us to expand into the market,” Charles Tan, chief marketing officer at Coinstore, told Reuters.

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When asked why Coinstore was launching India despite the ongoing cryptocurrency crackdown, Tan said: “There have been policy reversals, but we hope things are going to 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 cryptocurrency trading by imposing large capital gains and other taxes, two sources told Reuters earlier this month. Read more

He said he would only allow certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda for the winter session scheduled to begin later this month. Read more

Tan said Coinstore plans to recruit around 100 employees in India and spend $ 20 million on marketing, hiring 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 start of this year, attracting hordes of Indian investors.

Industry estimates suggest that there are 15-20 million crypto investors in India, with total crypto holdings of around 400 billion rupees ($ 5.33 billion).

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

($ 1 = 75 0400 Indian rupees)

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Reporting by Nupur Anand; Editing by Mark Heinrich

Our Standards: Thomson Reuters Trust Principles.

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