- Coinbase works with India’s FIU to meet regulatory requirements.
- India reviews crypto regulations, influenced by global trends.
- Coinbase aims to tap into India’s growing Web3 ecosystem.
Coinbase is set to return to India’s growing crypto space, engaging with regulators like the Financial Intelligence Unit. As India revises its policies on crypto, the exchange seeks to capitalize on the country’s expanding digital ecosystem.
Coinbase Targets India’s Comeback
Coinbase plans to re-enter the Indian market after a hiatus of over a year. The company is engaging with Indian authorities, including the Financial Intelligence Unit (FIU), to obtain regulatory approvals. This move comes as India revisits its approach to cryptocurrency, influenced by global regulatory changes.
Coinbase halted operations in India in June 2023 due to regulatory challenges. Local banks have remained cautious about involvement with crypto exchanges to maintain a favorable relationship with the Reserve Bank of India. In 2022, Coinbase faced difficulties launching its services when the National Payments Corporation of India (NPCI) refused to acknowledge its platform.
Regulatory Compliance
The company seeks to comply with local financial regulations and secure a license from the FIU. India’s government is reviewing its cryptocurrency policies, especially in light of global developments. Economic Affairs Secretary Ajay Seth said that India must adopt a comprehensive approach that factors in international trends, as cryptocurrencies are borderless assets.
The exchange has expressed its excitement about the opportunities in India and its commitment to comply with the local regulatory framework. However, the company has not disclosed the status of its registration with the FIU. Coinbase’s renewed focus on India is part of its broader international expansion strategy.
India Crypto Market Attracts International Exchanges
India has become an attractive market due to the growing interest in cryptocurrencies despite the regulatory challenges.. The Indian government imposes a 30% tax on capital gains from crypto investments as well as a 1% tax-deducted-at-source (TDS) on transactions. These policies continue to impact the operations of crypto exchanges in the country.
Coinbase’s potential comeback follows a similar move by Binance, which resumed operations in India after meeting FIU requirements in mid-2024. Binance’s successful return has set a precedent for Coinbase as it seeks to re-establish itself in the market. The timing of the exchange’s re-entry depends on how long it takes to secure the necessary approvals.
As Indian exchanges like CoinSwitch and CoinDCX continue to grow, Coinbase’s re-entry could provide users with diverse opportunities and strengthen competition in the Indian crypto market. These platforms have benefited from rising crypto adoption despite the regulatory uncertainty in India.
Global Expansion
The exchange has made strides in global expansion, with recent regulatory approvals in the UK. The company’s efforts in India align with its goal of tapping into the country’s growing Web3 ecosystem. Coinbase’s Chief Legal Officer, Paul Grewal, recently joined the board of the U.S.-India Business Council, reinforcing its commitment to strengthening ties between the U.S. and India.