Coinbase, one of the world’s largest cryptocurrency exchanges, is actively working to re-establish its presence in India after suspending operations more than a year ago.
The company is currently engaging with multiple Indian regulatory bodies, including the Financial Intelligence Unit (FIU), to secure the necessary approvals for a compliant relaunch.
The move signals Coinbase’s determination to tap into one of the world’s fastest-growing crypto markets despite the regulatory challenges that forced its previous exit.
With India emerging as a key player in the global cryptocurrency space, Coinbase aims to navigate the country’s evolving financial landscape and establish a sustainable foothold.
Regulatory Hurdles and Coinbase’s Previous Setback
Coinbase’s earlier attempt to launch in India was short-lived due to regulatory resistance.
In April 2022, the exchange introduced support for the Unified Payments Interface (UPI), a widely used digital payments system in the country.
However, the National Payments Corporation of India (NPCI), which oversees UPI, refused to recognize Coinbase’s operations.
Just three days later, the company was forced to suspend its services. CEO Brian Armstrong later revealed that the Reserve Bank of India (RBI) had exerted informal pressure on the company, discouraging banks from processing crypto transactions.
Despite no explicit legal ban on crypto trading in India, financial institutions remain hesitant to engage with digital asset firms due to concerns over regulatory scrutiny.
Also Read: India’s Budget 2025: No Change On Crypto Taxes, 30% Tax On Capital Gains Remains
Compliance Efforts and the Path to Re-Establishment
To successfully return to the Indian market, Coinbase must secure licensing and regulatory approval from the FIU, which has previously flagged exchanges like Binance and Kraken as “illegal” for non-compliance.
Many of these firms have since taken steps to meet India’s regulatory standards, including increasing transparency and enhancing monitoring of user transactions.
Coinbase is expected to follow a similar compliance route, working closely with authorities to align with India’s evolving crypto regulations.
The process could take several months, depending on government responsiveness and potential changes in policy.
If Coinbase successfully navigates these requirements, it could set a precedent for other exchanges looking to enter or expand in India.
India’s Crypto Landscape and Recent Market Developments
Despite regulatory uncertainty, India’s cryptocurrency sector continues to experience significant growth, driven by increasing adoption among retail and institutional investors.
Coinbase’s return could provide Indian traders with access to a global exchange known for its security and compliance.
Meanwhile, recent developments highlight the shifting dynamics of India’s crypto landscape.
Jetking recently became the country’s first publicly traded Bitcoin-standard company, drawing optimism from industry leaders like Michael Saylor.
Bybit, another major exchange, has successfully registered with the FIU, marking progress in regulatory acceptance.
Additionally, the Indian government has introduced strict tax policies, imposing a 70% penalty on undeclared crypto gains, reflecting a more structured approach to oversight.
Coinbase’s potential re-entry into India could further influence regulatory clarity, helping shape a more transparent and compliant crypto ecosystem in the country.
Also Read: Payment Gateway Firms In India Are Under ED Investigation Over Alleged Crypto Scam