Singapore based digital currency exchange Coinstore enters India. This exchange has initiated its operations in this country at a time when the Indian Government is planning legislation to efficiently bar most of the private digital currencies. Let us have a look at some of the cryptocurrency news in India.
Coinstore Enters India: Their Aims And Future Plans
Coinstore enters India and has recently launched its application and web platform and is preparing for its branches in New Delhi, Bangalore, and in Mumbai which will act as its foundation in this country for more expansion in the future according to a statement released by its management. Charles tan who is the marketing head at Coinstore said,
“With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market.”
On being asked, why Coinstore is launching in India at a time where there are pending shutdowns on digital currencies, 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.”
According to sources, the government is aiming to discourage the trading of digital currencies by imposing high capital gains and several other taxations. As per the sources, the government will enable only some specified digital currencies to promote the blockchain technology and its uses as per a legislative agenda for the winter session which has been scheduled to start from the 29 November 2021.
Mr.Tan, when Coinstore enters India, further asserted that his company aims to recruit nearly 100 employees in India and planned an expenditure of nearly $20 million for marketing, development of digital currency related products, hiring, and crypto services for the Indian market.
Coinstore is the second global crypto exchange to enter this country in recent times, following the activities of CrossToweer that were released for its local unit in September.
The Bitcoin price, which is the largest digital currency across the globe, has doubled since the beginning of 2021, attracting an immense number of Indian investors.
The New Crypto Bill In India
For a long time now, India is planning to regulate digital currency. Before, the RBI has ordered all the financial institutions and banks to stop accepting crypto payments and tried to ban the use of digital currency in this country, but the Supreme Court dismissed this case. So, the government has now proposed a new crypto bill that will deal with the regulations in the crypto space. Cryptocurrency in India may be centralized.
Sources reveal that according to the crypto bill the government may ban all the private digital currencies and allow only certain cryptos. Also, the government will lay forward the proposal to introduce their own CBDC (Central bank Digital Currency) which will be centralized.
RBI said in July that it was functioning towards formulating its own digital currency and the CBDC (Central Bank Digital Currency). RBI deputy governor T Rabi Sankar said,
“A CBDC is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies that have mushroomed over the last decade. Private virtual currencies sit at substantial odds to the historical concept of money.”
As per the former governor of RBI, Raghuram Rajan, many of the virtual currencies that are now functioning will croak in some days. Only a handful among them would survive. He said,
“If things have value only because they will be pricier down the line, that’s a bubble,” he told in an interview. A lot of cryptos have value only because there is a greater fool out there willing to buy.”
He compared the recent fad in digital currencies to the Netherlands Tulip Mania of the 17th Century. He said,
“Cryptos may pose the same problem as unregulated chit funds, which take money from people and go bust, a lot of people holding crypto assets are going to be aggrieved.”
In this scenario, if Coinstore enters India, this can pose a problem for them, as the verdict of the parliament session and the new bill will have a good amount of impact in the crypto space. The cryptocurrency price in India will face a huge fluctuation. Presently, with the news of the crypto bill, the Dogecoin price in India is 15.55 INR.
Despite the crypto turmoil in this country, Coinstore enters India. Coinstore is a Singapore based digital currency exchange that has begun its operations in India. They have recently launched their app and web platforms and are also set to establish their offices.
As per the industry estimates, there are 15 to 20 million cryptocurrency investors in this country, with a total crypto holding of nearly 400 billion rupees. Coinstore also has plans to widen its business in Japan, Indonesia, Korea as well.