Coinbase, a leading U.S.-based cryptocurrency exchange, is actively preparing to re-enter the Indian market after ceasing operations over a year ago. The company is engaging with Indian authorities, including the Financial Intelligence Unit (FIU), to secure the necessary approvals for its return.
This move comes as India is reassessing its stance on cryptocurrencies amid global regulatory shifts. Economic Affairs Secretary Ajay Seth emphasized that India’s approach to cryptocurrencies cannot be unilateral, given their borderless nature.
Despite stringent regulations and a 30% tax on crypto trading profits, India has emerged as a global leader in cryptocurrency adoption for the second consecutive year. A report from blockchain analytics firm Chainalysis highlighted India’s high usage of both centralized and decentralized finance assets between June 2023 and July 2024.
Coinbase’s initial entry into India in April 2022 was short-lived, primarily due to regulatory challenges. The company had to suspend most of its operations after the National Payments Corporation of India stated it was “not aware of any crypto exchange using UPI,” leading to the cessation of UPI-based transactions.
In its renewed effort, Coinbase is not only engaging with the FIU but also exploring partnerships to facilitate seamless transactions for Indian users. This initiative aligns with the broader trend of global crypto exchanges seeking to establish a foothold in India, recognizing the country’s significant market potential.
The outcome of Coinbase’s discussions with Indian regulators remains to be seen. However, the company’s proactive approach and the Indian government’s ongoing review of crypto policies suggest a potential for more structured and compliant crypto operations in the country.