The International Route
If the promise of progress provided by the world’s third largest fintech market is thwarted by a complete ban on cryptocurrency investments, enterprise funds with exposures to crypto corporations in India could think about transferring these companies overseas.
“Whereas we consider that India is a good alternative for cryptocurrency, we could think about shifting the operations overseas, amongst different choices, if the ban does undergo,” stated Agarwal. Unocion, he stated, already has a registered workplace in Singapore out of which it could possibly function in some other nation on the planet.
However going international may additionally imply stiffer competitors for homegrown cryptocurrency companies.
“This enterprise runs on belief, and it’s difficult for an Indian change serving international international locations to achieve that belief. But when not given an choice by the federal government, we might be compelled to contemplate shifting our operations overseas,” stated Sathvik Vishwanath, co-founder and chief govt of Unocoin.
One other Indian cryptocurrency change CoinDCX, backed by Singapore-based expertise consultancy agency Primestack Pte Ltd., introduced the launch of its international product Cosmex that facilitates crypto-to-crypto buying and selling. The corporate has arrange a world subsidiary that can function the particular objective automobile to facilitate its international operations, it stated in a Feb. 11 press launch.
“By way of this platform, we’ll work like a dealer and supply international liquidity to Indian and international crypto traders. Whereas we watch for the end result on cryptocurrency regulation in India, in case a ban does undergo, native traders who’ve grown their portfolio in varied cryptocurrencies would nonetheless be capable of proceed their commerce by way of the Cosmex platform,” stated Ramalingam Subramanian, model and advertising head at CoinDCX.
An identical script had performed out three years in the past after the RBI’s restrictions introduced native crypto companies to a halt. In 2018, Ayon Capital and Rahul Pagidipati-backed ZebPay, which re-started its India operations in January final yr, shut store and arrange an workplace in Malta to develop operations within the European market. The change later launched buying and selling providers in 131 countries the world over.
“Indian entrepreneurs have constructed a number of functionality on the cryptocurrency entrance. But when the surroundings and the legal guidelines usually are not conducive, it is not going to be a shock in the event that they transfer out to setup international platforms to seize abroad markets,” stated Handa.