Business Standard

Mudrex expands its footprint outside India, launches its platform in Italy

Mudrex CEO Edul Patel said the main reason they chose the EU was that there was more regulatory clarity there as compared to the other regions

Cryptocurrency

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Raghav Aggarwal New Delhi

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In a bid to expand its footprint to foreign countries, the crypto investment platform Mudrex has launched its platform in the European Union (EU). Mainly due to clearer regulations and investors being more aware of the crypto assets there, the company has decided to roll out its platform in Italy and then expand to other EU countries, its chief executive officer (CEO) and co-founder Edul Patel told Business Standard.

The platform, which helps users make systematic investment plans (SIPs) with crypto, is a registered virtual asset provider with the European Central Bank (ECB).

Patel said that the main reason they chose the EU was that there was more regulatory clarity there as compared to the other regions. The other reason was that the investors there have been exposed to crypto assets for a longer period as compared to elsewhere, especially in India.

Notably, last month, the EU Parliament passed the Markets in Crypto Assets (MiCA) act, the first comprehensive crypto regulation for digital assets to date. 

"From the perspective of asset allocation, users in Italy already perceive crypto at the same level as mutual funds or shares. The users in Italy is on an average 10-15 years older than that in India, and the majority of them are looking for safer investments," Patel said on why the company chose Italy. 

After Italy, the company will likely launch the platform in Spain, the Netherlands and Germany.

"Users in the EU had an early exposure to crypto as compared to Indians. So, users there have seen multiple cycles of fall and rise in crypto prices and they have a higher belief in the long-term holding of the crypto assets," Patel added.

He said that India would remain the company's primary focus as it was moving in the "right direction" in terms of regulations.

"The intention of the government is to help users understand where they are putting their money and then also set up a framework for taxation...In the next few years, we see tax rates going down leading to higher adoption among users," Patel said.

India currently levies a 30 per cent tax on selling crypto assets and a 1 per cent tax deducted at source (TDS) on every crypto transaction.

On being asked why Mudrex didn't launch in North America first, he said it was mainly due to the regulatory ambiguity in the region. However, the company has applied for licenses in Canada and may soon roll out its platform there too.

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First Published: May 15 2023 | 12:15 PM IST

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