As crypto exchanges in India prepare to scale down operations as a consequence of a central bank directive, Belfrics Group is preparing to ramp up its activities in what it sees as a critical market.
Belfrics Group which is based in Malaysia announced it is resuming after ceasing operations earlier in January.
Its target is now to net at least 250,000 users in the Indian market by the end of this year.
This comes as Zebpay, one of India’s largest cryptocurrency exchanges warned customers they may not be able to make fiat withdrawals as a deadline given by the Reserve Bank of India elapses in July.
The directive by the RBZ bars banks and other financial institutions regulated by the body from providing services to cryptocurrency businesses. It is not yet clear how Belfrics is planning to navigate this problem.
“India is a key market for us when it comes to crypto trading. With the launch of these new coins, we are targeting a base of at least 250,000 new traders on our platform by December 2018.” Jabeer KM who is the Group’s COO is quoted as saying.
“We understand that the RBI has reservations on trading in cryptocurrencies and digital currencies. But we are confident that they will be coming up with their own set of regulations for this industry. From our end, we are making sure that Belfrics Group is ready with multiple options for our Indian customers when crypto trading becomes regularized,” Jabeer said in the statement.
At the same time, the company has launched a live order book trading app with advanced functionalities as it seeks to meet the needs of its users.
The app is available for both android and iOS devices. Users can also make transfers directly from the app.
“The traders can now securely link their assets with our Belfrics wallet, which will give them a seamless experience to transfer their cryptocurrencies. The new app will be available for both Android and iOS users,” Santhosh Palavesh, Chief Innovative Officer said.
A case challenging the RBZ directive is already in court but the directive has not been set aside.
Virtual currencies “raise concerns of consumer protection, market integrity and money laundering, among others,” the central bank has noted.
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time,” RBZ directed.
However RBZ is also mulling over introducing an official cryptocurrency, a move that attracted criticism from cryptocurrency investors and enthusiasts.
A report by an interdepartmental group on the “desirability and feasibility to introduce a central bank digital currency” is set to be presented at the end of June.