In a significant development U.S.-headquartered digital currency exchange CrossTower has set up a local unit in India and has launched a trading platform to increase its traction in the burgeoning domestic crypto market.
The development comes at a time when the fate of cryptocurrency is still unclear in India.
CrossTower India has hired 35 people and plans to increase headcount to 100 in 6 to 9 months, said the company.
CrossTower is following in the footsteps of Binance, the market leader which entered India in 2019.
According to blockchain data platform Chainalysis, India’s digital currency market has grown from $923 million in April 2020 to $6.6 billion in May 2021. Among 154 nations, India ranks 11th in cryptocurrency adoption, said Chainalysis.
“India will play a pivotal role and we plan to use the country as a hub to expand into other geographies,” said Kapil Rathi, co-founder and CrossTower’s CEO. He went on to add, as a late entrant in the Indian market, the company plans to increase its market share by providing competitive pricing and relying on advanced technology infrastructure.
“We believe we are taking a calculated risk,” said Rathi.
The Indian government planned on presenting a bill to parliament by March 2021 that aimed to ban cryptocurrencies, making trading and holding them illegal. However, the bill was not tabled and there is uncertainty about the government’s plans. India’s central bank plans on launching its own digital currency by December 2021.