Gemini to invest $24 million in India despite ongoing legal woes. Assessing…
- Gemini is expected to grow its technology development center in Gurgaon and double its workforce.
- However, the exchange is engaged in legal battles on two fronts— with the U.S. regulator and its parent company.
New York-based cryptocurrency exchange Gemini said it has plans to invest Rs. 200 crore ($24 million) in India over the next two years. The exchange will use these funds to grow its technology development center in Gurgaon, a major financial metropolis in India. It also plans to double its workforce in the Gurgaon office from 70 to more than 150 employees.
The firm cited the Indian government’s Startup India initiative and the recent moon landing to make the case for this investment in its India office. The crypto firm set up its office in Gurgaon in April only as part of its Asia-Pacific (APAC) expansion plans. Besides the U.S., it has offices in the United Kingdom, Singapore, and Ireland as well.
The U.S. government’s less-than-receptive policy toward crypto is pushing many crypto firms to move to other crypto-friendly regions. Two weeks earlier, Chainalysis placed India at the top position in its 2023 Global Crypto Adoption Index. The country has seen its crypto sector getting popular and widespread with time.
“Crypto-friendly” India has a 30% crypto gains tax
However, things are not so pleasant for crypto firms or retail traders in India. India had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for discussion in the parliament. The bill was designed to lay the groundwork for the introduction of digital currency in the country. But it couldn’t be legislated.
India has a basic crypto policy framework but it is not formulated in great detail. Last year, the South Asian country introduced taxes in regard to crypto trading. It has a 1% tax deducted at source (TDS) that applies to every crypto transaction. It also has a 30% capital gains tax for profits made through crypto trading.
Though not as combative towards crypto as the U.S., the Indian regulator has time and again criticized the crypto industry for its many failures.
During a business summit held in January 2023, the central bank’s governor Shaktikanta Das called for a ban on crypto. India’s finance minister Nirmala Sitharaman was however less hostile as she believed that there should be a global consensus on crypto regulation.
India recently hosted the G20 summit that concluded early this month. During the summit, the member countries’ intervention led to the International Monetary Fund (IMF) and the Financial Stability Board (FSB) recommending a comprehensive and standard framework for crypto. The paper called for comprehensive and standard policies, instead of blanket bans, for safeguarding customers against crypto.
Gemini battling SEC and DCG
Meanwhile, Gemini was still engaged in legal battles on two fronts— with the U.S. regulator, and Genesis’ parent company, Digital Currency Group (DCG).
Gemini sued Genesis’ parent company, DCG, in July as DCG’s subsidiary, Genenis, filed for bankruptcy a few months earlier in January. Gemini claimed that DCG misinterpreted financial statements to recover Gemini Earn funds from Genesis. In August, DCG moved to court to have Gemini’s lawsuit dismissed.
Amidst such intricate circumstances, it is critical for us to see how the crypto firm implements its expansion plans in other countries.