We'll make long-term investments in India; nothing will happen overnight, says Brian Armstrong, co-founder of Coinbase.
Coinbase (COIN) announced on Thursday that consumers in India can now access its cryptocurrency trading services.
- The exchange's app will now be available in India, according to the company, which announced the news during an event in Bengaluru, India's innovation capital. By trade volume, Coinbase is the world's second-largest exchange.
- Coinbase co-founder and CEO Brian Armstrong, who has been in India for the past few weeks, originally declared that the business is making a "long-term investment" in the country. Surojit Chatterjee, the company's Chief Product Officer, then showed user onboarding on the exchange.
- The announcement comes as India prepares to implement new crypto taxes. The law includes a controversial 1% tax deducted at source (TDS) that will take effect on July 1 and a 30% tax on earnings from crypto transactions that went into force on April 1.
- Armstrong acknowledged the regulatory challenges of marketing the technology to mainstream acceptability at a time when enthusiasm has waned as a result of the new tax code. "We understand that bringing this technology to market will not be easy. We have no idea how things will turn out.
- But we're dedicated to working with bank partners, authorities, and, most importantly, the Indian people, who have shown a genuine interest in cryptocurrency and a strong want to access some of these services and products "he stated
- Setting up a UPI payment method is required for Coinbase onboarding. The Indian central bank regulates UPI (Unified Payments Interface), an immediate real-time payment system that allows peer-to-peer and person-to-merchant transactions.
- "India has showed a real readiness to work with UPI," Armstrong said. Setting up UPI, according to Chatterjee, is the initial step towards purchasing cryptocurrency. Coinbase has "invested over $150 million in over 10 firms in India," according to Chatterjee, including "Polygon, CoinDCX, and CoinSwitch."
- Coinbase stated earlier this week that by the end of the year, it aims to hire 1,000 individuals in India at its innovation hub.