Coinbase Registers with India’s Financial Intelligence Unit, Cleared to Offer Crypto Trading Services
Crypto exchange Coinbase has received approval to offer crypto trading in India after it left the region due to regulatory issues.
Coinbase announced it registered with India’s Financial Intelligence Unit (FIU), enabling the exchange to offer cryptocurrency trading services in the country. The exchange left the market nearly two years ago due to regulatory concerns.
An Encouraging Sign for the Crypto Industry in India
Cryptocurrency exchange Coinbase announced it registered with India’s FIU to allow crypto trading services in the country. In an announcement, the exchange said its registration “with India’s Financial Intelligence Unit (FIU) marks a significant milestone in our international expansion strategy. It enables us to offer crypto trading services in India. We plan to launch our initial retail services later this year, followed by additional investment and products in India thereafter.”
According to reports by Reuters, Coinbase’s re-entry into the region comes at a time when interest in digital assets has soared in India as many young Indians have increasingly stepped into the market with hopes of supplementing their income. The exchange first entered the Indian market in 2022 but withdrew its operations a year later due to regulatory concerns and hurdles. India requires digital asset service providers such as Coinbase to register with its FIU as a “reporting entity and comply with obligations mandated under the country’s anti-money laundering rules,” Reuters explained.
John O’Loghlen, Regional Managing Director for APAC at Coinbase, said:
“We’re committed to building in markets that believe in the potential of crypto and onchain innovation.”
Adding;
“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.”
Why Re-Enter the Indian Market?
Coinbase’s decision to re-enter the Indian market is mainly motivated by India’s rate of crypto adoption. Per a 2024 Chainalysis report, India boasts one of the highest rates of grassroots crypto adoption. It exhibits a strong decentralized finance (DeFi) scene, which aligns with Coinbase’s international expansion strategy.
India is a global technological powerhouse and “has rapidly grown into an onchain development hub, with its share of global developers increasing from 3% in 2018 to 12% in 2023.”
O’Loghlen commented on India’s emergence as a global technical powerhouse, stating,
“India’s developer community and entrepreneurial energy are unmatched. But too often, young Indian entrepreneurs have felt forced to look abroad to build global companies. Crypto can change that. By expanding access to our trusted platform and tools such as Base, we aim to empower a new generation of builders to stay home, innovate locally, and scale globally.”
Despite India’s continued 30% tax on crypto trading gains, the country is among the most welcoming to the burgeoning startup ecosystem. India’s tax levy is one of the highest globally, and it has yet to outline updated regulations for digital assets. While India’s policies have not yet been outlined, the regulatory status of these assets has come into focus since President Donald Trump’s election victory. A February Reuters article reported that India is indeed reviewing its stance on cryptocurrencies, given the changing attitudes toward virtual assets in other countries.
India’s Economic Affairs Secretary Ajay Seth said in an interview:
“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again.”
In its announcement, Coinbase shared its view on crypto, underscoring its value as more than “just financial infrastructure” and believes in its social and economic policy. The exchange believes digital assets can create incentives that motivate India’s “brightest minds to build world-leading products from India for the world.
Commitment to Fostering Strong Ties Between US and Indian Economies
As Coinbase continues to foray into the region, Coinbase’s Chief Legal Officer, Paul Grewal, was recently appointed to the Board of the U.S.-India Business Council (USIBC). The USIB is essential in advancing the commercial relationship between the two economies. Grewal’s appointment underscores the exchange’s commitment and excitement to building strong ties between the US and India.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
