CrossTower to Offer Credit to Attract Indian Crypto Investors

(Bloomberg) -- U.S. crypto firm CrossTower Inc. is offering 5,000 rupees ($67) credit to Indian users to invest in digital currencies on its platform, even as the nation’s policymakers remain skeptical of the assets.

CrossTower, which introduced its crypto trading platform in India last month, is starting the program to allow “Indians to fearlessly understand the world of crypto, start earning safely and rapidly to secure future savings,” India Chief Executive Officer Vikas Ahuja said in a statement on Friday. 

Many crypto platforms, as with other consumer-focused services, offer incentives to get users to sign up, hoping they will boost their account numbers and revenue.

With more than 15 million users, India is drawing massive interest from crypto investors even though the country’s banking regulator has expressed concerns about the assets’ volatility and potential use in anti-money laundering.

The Supreme Court last year quashed a 2018 rule banning crypto trading by banking entities, leading to a surge in such investments. Still, with the absence of any firm regulations on such trades, investors are in a flux about the money they have put in so far. The government is still finalizing its guidelines to regulate crypto-trading after a proposed trading ban in January. 

CrossTower will bear any loss from the investment and users will be able to earn profit they can withdraw, after settling the credit amount, it said.

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