Crypto exchange OKX is gearing up to make a bold entry into the Indian market, aiming to hire local staff and explore Web3 applications. This move comes despite the prevailing regulatory uncertainties surrounding cryptocurrencies in the country.
OKX’s strategy: Tapping into India’s developer community
Haider Rafique, the Chief Marketing Officer of OKX, revealed the company’s intentions to expand its wallet services by leveraging India’s burgeoning developer community. OKX currently boasts about 200,000 wallet users in India, which accounts for about 5% of the country’s Web3 users. Rafique expressed optimism about the Indian market, stating that OKX wants to be the front-runner once India establishes a crypto regulatory framework.
While OKX remains optimistic about its prospects in India, the regulatory environment presents a complex picture. Last year, Indian authorities imposed stiff taxes on crypto gains but stopped short of declaring cryptocurrencies either legal or illegal. Earlier this year, India, as the head of the G20 group of nations, proposed a path for the development of globally coordinated rules for crypto assets. Additionally, the Indian Supreme Court directed the Union government to clarify its stance on establishing a federal agency to investigate crypto-related criminal cases.
Despite these uncertainties, the Reserve Bank of India continues to study and develop its Central Bank Digital Currency, known as the digital rupee. This suggests that while the central bank opposes the legalization of cryptocurrencies, it is not entirely averse to digital currencies.
OKX’s planned entry into India comes at a time when most global cryptocurrency exchanges have shied away from the Indian market due to its challenging regulatory environment. According to data from AppTweak, six of the 10 most downloaded trading applications in India are from international exchanges. Notably, trading on Coinbase was suspended within three days of its launch in the country.
OKX’s strategy to tap into India’s developer community for Web3 applications could potentially set a precedent for other global exchanges contemplating an entry into the Indian market.
