Singapore-based crypto exchange Coinstore has entered the Indian market despite regulatory uncertainty in the country.
Coinstore has committed $20 million to its move to India
Coinstore announced that it has set aside a $20 million fund to set up three new offices in the Indian cities of Bangalore, Delhi, and Mumbai. The exchange plans to launch a web and app platform for spot and futures trading in India. The platform requires customer verification before users can buy and sell over 50 cryptocurrencies. Jennifer Lu, the co-founder of Coinstore, said that more than 20% of Coinstore’s active users are from India, which makes the decision logical.
The crypto exchange also plans to hire 100 employees for its customer support, marketing, and operations departments. According to Jennifer Lu, co-founder of Coinstore, the $20 million allocated for expansion in India will primarily be used for marketing, hiring talent, and developing crypto products and services for the Indian market. It is the second crypto exchange to set up shop in India in recent months. It follows CrossTower, which launched its local unit in September.
The move comes at a time of regulatory uncertainty
It is noteworthy that Coinstore has decided to move into India while there is currently regulatory uncertainty. The Indian Parliament announced that it would introduce 26 new bills in the winter session, including a crypto bill that aims to ban private cryptocurrencies while creating an official digital currency. The bill is listed for discussion in the parliamentary session that started today.
Due to regulatory uncertainties, the stablecoin Tether (USDT) witnessed a drop in price on Indian exchanges, falling as low as INR 60. However, according to the current exchange rate, the coin should have been worth INR 74.37. Bitcoin also saw a massive sell-off as its price fell 14.8% in two hours on the local exchange WazirX.