CrossTower Inc., the global cryptocurrency exchange, recently opened a branch in India and now offers crypto credit to new investors.
Originally from the United States, CrossTower manages fully regulated crypto exchanges in the U.S. and Bermuda and services 81 countries. In early September, the firm announced the opening of a local branch in India.
Following the launch of the new branch, the company has an incentive offering for new investors. It will offer 5,000 rupees ($67) in credit to Indian users for cryptocurrency investments on the platform. The CEO of CrossTower India, Vikas Ahuja, said the development would help Indian participation to grow in the crypto space.
The program allows “Indians to fearlessly understand the world of crypto, start earning safely and rapidly to secure future savings.”
Moreover, the platform states it will bear any losses from the investment made via the credited crypto. However, users can withdraw any profits earned once the credit amount is settled.
Incentivizing new crypto investors appears to be a trend, especially in new and emerging markets. In El Salvador, the government introduced the country’s official crypto wallet Chivo. As an incentive for user downloads, new investors received $30 upon registration. Less than a month after its launch, Chivo reported over two million active users.
This incentive model is understandably attractive as it gives users a lower-risk entry into the world of cryptocurrencies. However, what this means in terms of the longevity of users on an exchange or platform can only be seen further down the line.
India’s crypto commotion
CrossTower is entering India as the country battles a two-sided stance on digital currencies.
On the one hand, Indian officials have a tightened stance on cryptocurrencies. In 2018 the central bank of India banned cryptocurrencies, though the Supreme Court struck it down in 2020. However, in June 2021, Indian officials began reconsidering the ban on digital currencies.
Already, India’s financial regulator barred investment advisors from advising on cryptocurrencies.
On the other hand, there are promising reports of adoption, innovation, and other forms of growth in the Indian crypto market. In fact, the crypto-tech industry in India is on track for a $241 million valuation by 2030, according to industry reports.
Moreover, promising adoption signs come from the next generation of Indian investors. Youth in the country helped push India to a market growth of 641% as of last week.