Coinome

Coinome was an Indian cryptocurrency exchange platform that enabled users to buy, sell, and trade various digital currencies using Indian rupees (INR). It was launched to provide a secure, user-friendly, and regulatory-compliant gateway for cryptocurrency transactions within India. Coinome was among the first exchanges in the country to offer instant e-KYC (Know Your Customer) verification and aimed to simplify cryptocurrency adoption among Indian investors during the rapid growth of digital assets in the late 2010s.

Background and Establishment

Coinome was established in November 2017 and operated under Hatio Innovations Pvt. Ltd., a wholly owned subsidiary of BillDesk, one of India’s leading online payment gateway companies. BillDesk’s involvement lent the platform credibility and financial infrastructure support, as it had already built a reputation for secure and efficient digital payment systems.
The exchange was based in Mumbai, Maharashtra, and its founders envisioned creating a platform that adhered to both technological innovation and financial compliance, bridging the gap between traditional finance and emerging blockchain-based systems.

Features and Services

Coinome was designed to provide seamless trading experiences for both novice and experienced users. Its key features included:

• Multiple Cryptocurrency Listings: Initially supported popular cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and later added more altcoins.
• Instant e-KYC Verification: Integrated India’s Aadhaar-based identity verification system, allowing quick onboarding of users.
• INR Integration: Enabled direct trading pairs with the Indian rupee, allowing users to deposit and withdraw funds through bank accounts.
• Security Measures: Implemented two-factor authentication (2FA), cold wallet storage, and encrypted transactions for user safety.
• User-Friendly Interface: Provided intuitive dashboards and trading tools for buying, selling, and portfolio tracking.
• Fast Settlement: Offered quick transaction processing, leveraging BillDesk’s existing payment infrastructure.

Coinome was one of the few exchanges in India at the time to combine fiat-to-crypto and crypto-to-crypto trading facilities, making it a comprehensive platform for digital asset transactions.

Market Position and Popularity

Coinome entered the market during a period of significant cryptocurrency enthusiasm in India. Its association with BillDesk, a trusted name in fintech, gave it a competitive advantage over other emerging exchanges. It gained popularity for:

• Simplifying cryptocurrency access for Indian users.
• Promoting legal and transparent crypto trading in compliance with national regulations.
• Offering strong liquidity and competitive transaction fees.

Within months of its launch, Coinome established itself as one of India’s leading cryptocurrency exchanges, appealing to a growing base of investors exploring blockchain-based assets.

Regulatory Environment and Challenges

The period during which Coinome operated was marked by regulatory uncertainty surrounding cryptocurrencies in India.
In April 2018, the Reserve Bank of India (RBI) issued a circular prohibiting banks and regulated financial institutions from dealing with or providing services to cryptocurrency businesses. This directive severely impacted all crypto exchanges in India, including Coinome, as it restricted access to traditional banking facilities.
Despite exploring compliance measures and operational alternatives, the prolonged uncertainty and lack of regulatory clarity made it increasingly difficult for exchanges to sustain business operations.

Suspension of Operations

In May 2019, Coinome announced the suspension of its operations due to regulatory constraints. The exchange urged all users to withdraw their funds and digital assets by May 15, 2019, after which trading services were discontinued.
Coinome’s closure reflected the broader challenges faced by India’s cryptocurrency ecosystem at the time. Many exchanges either shut down, shifted overseas, or pivoted to blockchain services until the Supreme Court of India lifted the RBI ban in March 2020.

Legacy and Impact

Although short-lived, Coinome left a lasting impact on India’s cryptocurrency industry. Its contributions include:

• Pioneering Legal and Secure Crypto Trading: Among the first to integrate Aadhaar-based KYC for transparent and accountable trading.
• Bridging Traditional and Digital Finance: Brought institutional credibility to crypto exchanges through BillDesk’s fintech background.
• Promoting Public Awareness: Encouraged mainstream understanding and acceptance of cryptocurrencies in India.
• Setting Security Standards: Established best practices for data security and transaction integrity in Indian crypto platforms.

Coinome’s closure underscored the importance of regulatory clarity and policy alignment for the sustainable growth of digital finance in India.

Broader Context and Aftermath

The Indian crypto landscape evolved significantly after Coinome’s shutdown. The Supreme Court’s 2020 decision to overturn the RBI’s banking restrictions revived interest in the sector, leading to the emergence of new exchanges such as WazirX, CoinDCX, and ZebPay. These newer platforms adopted many of the technological and operational principles pioneered by early exchanges like Coinome.
Meanwhile, BillDesk’s involvement in Coinome demonstrated the potential for synergy between fintech and blockchain technologies, paving the way for future innovation in India’s digital financial ecosystem.

Significance

Coinome’s story reflects both the potential and volatility of cryptocurrency markets in emerging economies. It symbolised a pioneering attempt to integrate regulated digital asset trading within India’s financial framework. Though it ceased operations, Coinome remains significant as an early milestone in India’s journey toward a more open and technologically advanced financial future.