1. Introduction
India has more than 300 crypto startups. The daily crypto trading volume stands at an average
of 500 million dollars. India also has a 9% crypto adoption rate which is higher than the US,
China, Japan and Germany. The Indian crypto market is growing strong because of the
increased valuation of crypto exchange industry and the emergence of startups interested in
crypto exchange. There is almost a crypto mania that is sweeping the nation with new investors
putting their faith in cryptocurrency as an alternate asset class for smart investments. India has
more than 15 million investors in cryptocurrencies with an investment of 1.5 billion dollars.
Some of the major crypto startups in India are Wazirx, Zebpay, BuyUcoin, Unoicoin, BitBNS,
CoinSwitch Kuber etc.
2. Indian Government’s (Non)Regulation on Cryptocurrencies
Several regulatory hurdles have hindered large-scale investments in cryptocurrencies in India.
In 2018, the Reserve Bank of India banned private cryptocurrencies like bitcoin. However, in
2020, the Supreme Court of India abolished the RBI’s circular and thus facilitating
cryptocurrency transactions. In March 2021, there was a move to table, “Cryptocurrency and
Regulation of Official Digital Currency Bill, 2021” in the Parliament. This bill aimed at
criminalizing cryptocurrency possession in India. The Government also was exploring the
creation of a national digital coin. However, just before the March session of the Parliament, it
was announced that this bill would be taken up in the next session. In May 2021, Indian
Government announced forming a new panel of experts for creating a regulatory road map
involving crypto and blockchain usage.
Currently, cryptocurrency market is unregulated in India. This unregulated nature also gives a
unique opportunity to investors. Once regulated there may be a bigger market size in the crypto
space.
3. CoinSwitch Kuber
Founded in June 2020, CoinSwitch Kuber is an app-based cryptocurrency trading platform
exclusively for Indian retail investors. It is available as a mobile application. It supports more
than 100 cryptocurrencies. It also supports Indian Rupee. It is the most downloaded crypto
exchange app of 2021. It has emerged as one of the most powerful crypto exchange apps in
India based on the app’s competitiveness. It is the highest funded cryptocurrency exchange in
India having raised 40 million dollars in Series A and Series B rounds. Its current valuation is
500 million dollars. In the financial year 2020-21, CoinSwitch Kuber posted 8 million dollars
profits. It has made crypto investing as easy as ordering grocery or food online. In fact, it
provides the same retail experience that Swiggy and Zomato offer for their customers. The
experience of buying and selling cryptocurrency is similar to adding food to the cart and
checking out in Swiggy and Zomato apps.
CoinSwitch Kuber is a product extension of the
start-up CoinSwitch. Because of Government’s
regulatory hurdles, the founders had launched
CoinSwitch in the global market and were able
to garner revenue in millions within a month of
its launch. However, sensing a positive vibe
especially after the Supreme Court intervened
ruling out Reserve Bank of India’s 2018 ban of
crypto
business,
the
founders
launched
CoinSwitch Kuber specifically for the Indian
Figure 1: Growth of “App Power” of major Crypto
Exchange Apps in India
market.
4. Features of CoinSwitch Kuber
CoinSwitch Kuber has competitive advantage over others because of its unique features.
a) Instant Cryptocurrency Trading – Users can instantly buy, sell and trade more than 100
cryptocurrencies in one tap.
b) Liquidity – Unlike other traditional exchanges, CoinSwitch Kuber does not generate
liquidity. It connects multiple exchanges to find the best exchange rates for the users.
c) Zero Brokerage – Users can buy and sell cryptocurrencies at the best market prices with
zero fees.
d) No Lock-in Period – Traders are allowed to withdraw their earnings instantly. Because of
its no lock-in period, CoinSwitch Kuber is become a popular choice among crypto traders.
e) Best Rates – The users are connected to multiple platforms to ensure that they get the best
rates.
f) Multi-payment Compatibility – Users can choose to invest funds via NEFT or RTGS or
IMPS or UPI.
g) AI Chatbot – The app provides a live chat option to solve customer queries instantly.
h) Minimal Initial Deposit – The first-time users can begin trading with as little amount as Rs.
100. This gives first-time users an understanding of the cryptocurrency market without risk.
5. CoinSwitch Kuber’s Ad Campaign Targeting Millenials and GenZ
In October 2020, CoinSwitch Kuber launched a video film campaign (in Hindi) to show cause
how it is a smart move to invest early in cryptocurrencies and how it is safe to invest in this
new asset class. The campaign is like a beginner’s guide to cryptocurrency investments
answering all the doubts that investors or potential investors may have around cryptocurrency
investments, its legitimacy, security and perceived entry barriers.
However, the target of the campaign was tech-savvy millennials and GenZ retail investors who
were apprehensive about investing in cryptocurrencies.
CoinSwitch Kuber has simplified crypto investments for Indian retail investors. It targets only
retail investors instead of traders as over 90% of crypto buyers in India are retail investors. The
campaign was a huge success as within a year, CoinSwitch Kuber has over 7.5 million users.
As of now, most of the CoinSwitch Kuber users are aged between 18 and 35. 45% of the users
are from small cities.
They are currently focusing on engaging thought leaders in the finance space, promoting
campaigns that would get mainstream attention just as mutual funds and stocks do.
6. Setbacks and Challenges
a) Crypto Withdrawal Temporarily Disabled
Owing to recent deliberations on the provisions of the Foreign Exchange Management Act
(FEMA) and other applicable laws, CoinSwitch Kuber temporarily disabled the “Crypto
Withdrawal” option. However, the other options of buying, selling and depositing functioned
normally. This is a great concern for investors especially when they want to withdraw. Of
course, this is a challenging situation caused by the regulations of the Government, but
CoinSwitch Kuber has to assure that its transactions are not greatly affected by the regulations
of the Government.
b) No Support for Credit and Debit Cards Based Trading
CoinSwitch Kuber does not offer credit and debit cards support for crypto trading. This puts
some users at a disadvantage in using CoinSwitch Kuber for trading. The implicit reason for
not supporting credit card is to instill a sense of security in the minds of investors. However,
employing AI integrated Blockchain, the app can assure and ensure security and safety to
investors.
c) Only One Fiat Currency
CoinSwitch Kuber supports only one fiat currency namely INR (Indian Rupees). This may
prove difficult especially when a user migrates to another country for job and earns in that local
currency. To give it a global outlook, it may have to support other fiat currencies as well.
d) Difference in Actual Price and the Selling/Buying Price
The app guarantees execution at the price shown. CoinSwitch Kuber assures that its algorithms
determine the future price of the order and lock it for a brief period to finish the transaction at
the shown price. However, while trading there is difference between the shown price and the
actual price of execution.
e) Information on Security Measures
CoinSwitch Kuber has not shared information about is security measures to keep the crypto
assets secure. Working on the concept of decentralization, this platform should make
transparency of procedures and processes its primary goal and let know the users about the
security measures employed.