Mumbai based – Koinex, the leading crypto exchange is planning to foray into blockchain solutions. In its attempt to achieve this, Koinex has diversified its product line. It has also inaugurated a new development center in Bengaluru to serve blockchain solutions to the banks and financial institutions mulling its plan to extend its services across the globe. This development took place when most of the cryptocurrency exchanges have either shut operations or moved out of India.
Rahul Raj, CEO of Koinex said “We have done one bit of the entire vision – Exchange. Moving forward we are diversifying our product line”. Backed by Pantera Capital, San Francisco (largest blockchain focused venture capital firm in the world) and Beenext (Singapore), Koinex aims to serve possible solutions to banking operations like payments, security, and finance on an international level. Koinex is all set to build first and second layers of blockchain infrastructure tools as part of its research and development initiatives which will be critical for product designers and developers (pro in building decentralized Apps) and drive that technology into masses. With this, the company will be able to spot issues such as data tempering and fraud, lack of transparency, high transactional fees, and middlemen interferences for financial institutions.
The company has invested $1million for – hackathons, meetups, partner with academic institutions, research, etc. Koinex being the first Indian crypto exchange to support multiple cryptocurrencies on its platform became a go-to exchange for almost ten lakh crypto traders in India. Koinex has recorded its biggest transaction volume at Rs.1700 crores.
Targeting towards Fintech
Koinex is focusing on a product relevant to Fintech applications like lending, trading and analyzing, for the new evolving digital world. The global debt being $53 trillion and equity capital markets being $403 billion in initial nine months of 2018, there is an enormous opportunity to resolve issues like latency, reconciliation, DevCons, access to capital and building financial instruments, using blockchain technology. The company is planning to acquire more talent to achieve these targets and continue their focus on exchange business simultaneously.
In early 2018, Indian government restricted the banks to support crypto trading which resulted in a tremendous decrease of 90 percent in transaction volume in these exchanges. This act encouraged Indian exchanges to spread themselves globally and expand their offerings. While Koinex planned to invest in blockchain product development along with crypto trading, two Indian exchanges Zebpay and Bitxoxo, have moved internationally notwithstanding the act of government.
However, Raj said that the cryptocurrency market is expected to experience some dramatic changes very soon. The Indian government also formed a committee to draft a bill on crypto trading. The Supreme Court is likely to give its decision on January 15, 2019. Currently, the apex court is hearing various cases filed across the country on the legality of cryptocurrencies by clubbing them into one.
Koinex asserted that it “believes in the potential of Non-Fungible Tokens [NFTs] and feels strongly about tokenization being a unique way of representing ownership of an asset – both physical and digital.”