Coinstore, the Singapore-based crypto exchange, has launched into India’s cryptocurrency market.
Despite India Prime Minister Narendra Modi’s confirmation that a law regulating all cryptocurrencies was in the works, Coinstore appears to be undeterred as it aims to further build its brand in the Asian country.
Jennifer Lu, co-founder of Coinstore, said the decision was a logical one, considering more than 20% of Coinstore’s users were from India.
“With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market,” he 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.”
India’s history with crypto
The Indian government has been consistent with its inconsistency surrounding its position on cryptocurrency.
Alongside the Ministry of Finance, the RBI branded cryptocurrencies as ‘Ponzi schemes’.
In 2018, the Reserve Bank of India (RBI) attempted to ban banks from dealing in crypto. It led to a 99% drop in trading volumes and effectively collapsed the crypto market in India.
In 2020, the Supreme Court ended the RBI’s banking ban that led to a crypto boom with a study estimating the industry will grow more than 200% to reach $241m by 2030.
The Cryptocurrency and Regulation of Official Digital Currency Bill 2021, which has yet to be confirmed, has already made its mark on the crypto market in India with Bitcoin and Ethereum prices dropping nearly 24%.