Singapore-based virtual currency exchange Coinstore has started operations in India despite the Indian government preparing legislation to effectively bar most private cryptocurrencies.
In a statement Coinstore said, it has “launched its web and app platform and plans branches in Bangalore, New Delhi and Mumbai which will act as its base in India for future expansion”.
“With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market,” said Charles Tan, Coinstore’s head of marketing.
When asked why Coinstore was launching in India despite pending clampdown on cryptocurrencies, Tan said: “There have been policy flip-flops but we hope things are going to be positive and we are optimistic that the Indian government will come out with a healthy framework for cryptocurrencies.”
The Indian government plans on discouraging trades in cryptocurrencies and aims to impose hefty capital gains and other taxes, said two sources.
They went on to add, the Indian government is likely to allow only certain cryptocurrencies to promote the underlying technology.
According to Tan, Coinstore plans on recruiting around 100 employees in India and spend $20 million for marketing, hiring and development of crypto-related products and services for the Indian market.
In recent months, Coinstore is the second global crypto exchange to enter India. In September, CrossTower launched its local unit in the country.
Coinstore also plans on expanding into operations in South Korea, Japan, Vietnam and Indonesian.
($1 = 75.0400 Indian rupees)