The giant Coinbase bets on India

6 avril 2022

Namaste! – Coinbase Ventures, an investment arm of the Coinbase exchange, has shared a plan to invest $1 million in various Indian initiatives. The American exchange platform will hold a presentation event in Bengaluru. The goal? Help accelerate India's financial inclusion through crypto and Web3 investments. On March 25, 2022, the Asian country passed a new law on the taxation of crypto-assets. If it is not necessarily lenient, it at least has the merit of being clear.

Coinbase Ventures, a whale arrives on the back of an elephant

In a blog post written while in India, Coinbase CEO Brian Armstrong revealed that the company intends to tap into software talent in India. Indeed, the many developers in the country are keen on crypto and Web3 technologies. Thus, Coinbase intends to help accelerate India's economic and financial inclusion goals.
Coinbase cryptocurrency exchange lands in India in partnership with Builders Tribe. First consequences of regulation and a clear legal framework. Coinbase announces its investment in India – Source: Twitter

Friday, April 8, 2022 will be the presentation day organized in Bengaluru in partnership with Builders Tribe. This team will be further supported by Belief DAO to provide up to $25,000 in grants. Buidlers Tribe co-founder Pareen Lathia said Indian entrepreneurs are excited to get their businesses known internationally.

According to its CEO, Coinbase has already invested $150 million in Indian crypto and Web3 companies. In addition, the company plans to integrate 1,000 employees into its Indian technology hub. Establishing regulations is also a clear invitation to foreign investment.

•     “India is a magical place, and I think crypto has a great future here. We are excited to help build that future, and this event is an important milestone. »
•     Brian Armstrong, CEO of the American exchange Coinbase

Brian Armstrong is part of the vanguard of clarifying cryptocurrency regulations in the United States. Over the past year, Coinbase has overcome many regulatory hurdles put forward by the US Congress and the Securities and Exchange Commission (SEC). Because of this, the company is expected to play a key role in regulatory discussions around crypto around the world.

India, cryptocurrencies and regulation

The growing interest of foreign investors in the Indian crypto space can be attributed to recent regulatory clarity. Although controversial, the law on crypto taxation in India at least has the merit of being clear. This law, which came into effect from April 1, requires all Indian citizens to pay 30% of their crypto earnings as tax.

•     “Tax law is only a positive step. This is a paradigm shift, and regulation will catch up. »
•     Pareen Lathia, co-founder of Builders Tribe

Indian Finance Minister Nirmala Sitharaman has already announced plans to revamp the crypto tax in the near future. However, Coinbase's entry into the market has already attracted more than 110 candidates to Builders Tribe.
The arrival of the Coinbase cryptocurrency exchange in India has attracted more than 110 applicants from the Buidlers Tribe.

The state government of Maharashtra in India has started using Polygon's blockchain technology to issue caste certificates as part of the Digital India campaign. Indeed, it has partnered with LegitDoc to deploy these 65,000 certificates. The goal is to facilitate the process of delivering government programs and benefits.

Indian Administrative Service Officer Shubham Gupta said the Indian government is always on the lookout to implement technologies that can help democratize services to citizens.

•     “Web3 takes the concept of democratization to a whole new level (…) Data/information can not only be made openly shareable, but can also be made openly tamper-proof. »
•     Shubham Gupta, Indian Administrative Service Officer

The clarity provided by the new Indian legislation is likely to attract a lot of new investors. If the regulation is rather strict in the country, it nevertheless offers a legal framework on which crypto companies can rely. India, which wanted to ban Bitcoin and cryptocurrencies, has therefore created the opposite effect.