Indian Crypto Exchange Coinome completely shut down last month, only to relaunch as a technology service provider in the Blockchain Space for Enterprises.
Coinome, once India’s prominent exchange had to shut down due to lack of clarity in regulations and the central bank’s diktat forbidding banks to do business with Crypto exchanges. But, it is not a setting sun as many had presumed. Coinome moving from a B2C to a B2B model in the crypto space.
The goal of the company from the latest updates on the website is to cater the large crypto and blockchain businesses around the world at reasonable prices compared to the other market products.
The first product from coinome is an enterprise Crypto wallet. An enterprise wallet service helps businesses like crypto exchanges manage their user wallets, process deposits and withdrawals and to store all the assets securely via various means. It can also help custodian services and institutional investors.
For $500 a month, you can buy their enterprise wallet service that offers free withdrawals upto $500k, there after charging 0.1% fee. For $10000 you will receive ‘truly unlimited’ withdrawals from the wallet. The wallet supports 100+ crypto assets.
In comparison, Bitgo wallet charges 0.25% per withdrawal in its Pay-as-you-go model.
Some of the other features of the wallet include Multi-signature security with Coinome itself as one of the co-signer. This mitigates the security risks of someone stealing the funds with exchange private keys. Key generation for the enterprise takes place offline, hence removing the risk of an online hack on the wallet.
The wallet also comes with a risk management module that allows the client to set withdrawal limits, freezing wallets, etc. Coinome also provides ‘Unified REST API’ for ease of use with proper documentation.
Given the circumstances in India, Coinome shut down its exchange and pivoted towards catering to the businesses instead of retail consumers. Sources in the know of the situation say Coinome has already acquired few international clients for their wallet.
Backed by payment gateway service BillDesk, Coinome launched the exchange in late 2017, only to have to shut it down in less than two years. Other large exchanges in India like Koinex and Zebpay too shut their exchange services citing difficult circumstances to operate in India.
With the new business model, Coinome is focusing on providing services to those who are managing crypto on a large scale. But, with the latest leaked draft on Banning of Cryptocurrencies in India, Coinome may have to start looking at shifting base abroad.
Nevertheless, as a Crypto Enthusiast from India, I wish them good luck!
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