Coinbase Re-Enters Indian Crypto Market After Securing Regulatory Approval

A Fresh Start for Coinbase in India

The registration with the FIU grants Coinbase the ability to offer crypto trading services in India, a major milestone in its global expansion strategy. The company plans to relaunch retail trading services later this year, followed by additional investment products tailored to the Indian market.

John O'Loghlen, Coinbase’s Regional Managing Director for Asia-Pacific, expressed optimism about the development, stating:

"India is one of the most exciting market opportunities in the world today, and we're committed to deepening our investment here while complying with local regulations."

Coinbase’s Past Challenges in India

Coinbase initially launched in India in April 2022 but ran into regulatory roadblocks due to issues with the Unified Payments Interface (UPI), India’s primary payment system. Shortly after its launch, the National Payments Corporation of India (NPCI) stated that it was "not aware of any crypto exchange using UPI," leading to suspension of fiat deposit services for Indian users.

Since then, the exchange had maintained a limited presence in the country, allowing crypto-to-crypto transactions but restricting Indian rupee (INR) deposits and withdrawals. The new regulatory approval signals a shift in India’s approach to digital assets and gives Coinbase a second chance to establish itself in the market.

India’s Crypto Ecosystem and Regulatory Shift

India is rapidly emerging as a global blockchain and crypto hub, despite regulatory uncertainty in recent years. The country now has one of the world’s largest pools of Web3 developers, with its share of global blockchain talent growing from 3% in 2018 to 12% in 2023.

While the Reserve Bank of India (RBI) has historically been skeptical of digital assets, the Supreme Court overturned the RBI’s ban on crypto transactions in 2020. However, regulatory challenges persisted, including high taxation on crypto gains and strict compliance requirements.

Coinbase’s re-entry follows similar moves by other major exchanges such as Binance and KuCoin, which also registered with the FIU. This suggests a more open regulatory stance, which could fuel competition and innovation in India’s digital asset industry.

What’s Next for Coinbase in India?

With its FIU registration in place, Coinbase is expected to roll out crypto-fiat trading services in India over the coming months. The exchange will also focus on collaborating with local authorities to ensure compliance with India’s evolving crypto regulations.

As India continues to refine its digital asset policies, Coinbase’s success in the country could serve as a model for other global exchanges looking to operate within a regulated framework. The move also signals a potential shift in India’s broader approach to cryptocurrencies, especially as global regulations around digital assets evolve.

Final Thoughts

Coinbase’s regulatory approval in India is a major breakthrough for the country’s crypto ecosystem. It represents a shift in India’s digital asset policies and reaffirms the country’s potential as a key player in the global crypto economy. As the exchange prepares to resume operations, all eyes will be on how it navigates the Indian market’s regulatory and competitive landscape.