Coinstore expands to India despite pending cryptocurrency ban

Singapore-based online currency exchange Coinstore has commenced operations across India, despite the government’s expected legislative bar on most private cryptocurrencies.

Coinstore has released plans to expand across India by opening branches in Mumbai, New Delhi and Bangalore to support the launch of their web and app platforms within the Indian marketplace.

“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,” Charles Tan, Head of Marketing at Coinstore, told Reuters.

“With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market,” Tan added in the interview.

This news comes amidst India’s plans to tighten regulations surrounding privatised cryptocurrency exchange with the legislation demanding pre-approval of coins before they enter the Indian market. According to Reuters, such a process would create obstacles for “thousands of peer-to-peer currencies that thrive on being outside the ambit of regulatory scrutiny.”

Tan said that Coinstore plans to inject US$20 million into the project and that the company will recruit around 100 new employees in India.

Coinstore is the second global exchange to enter the Indian marketplace in recent months, following platform CrossTower which launched its local unit in September.