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Coinbase, one of the largest cryptocurrency exchanges in the US, is making strategic moves to re-enter India after more than a year of regulatory hurdles, as per a TechCrunch report.
The company, which previously halted its operations in the country, is now engaging with Indian authorities to meet compliance standards amid changing government policies on digital assets.
With the Indian crypto landscape evolving, Coinbase’s renewed push reflects a broader effort to establish a presence in one of the world’s largest digital asset markets.
Meanwhile, rival Binance has already resumed operations in India, setting a precedent for global exchanges navigating the country’s regulatory framework.
Coinbase seeks approval
Sources indicate that Coinbase is actively working with the Financial Intelligence Unit (FIU) and other Indian regulators to ensure full compliance.
The exchange is aiming to resolve past issues that led to its abrupt exit from the market, particularly concerning payment processing and taxation rules.
In June 2023, Coinbase restricted new user registrations in India due to regulatory pressure.
The exchange was initially launched in the country in April 2022, introducing support for the Unified Payments Interface (UPI).
However, within days, the National Payments Corporation of India (NPCI) distanced itself from the initiative, leading to the suspension of UPI services.
Despite these challenges, Coinbase remains optimistic about its long-term prospects in India.
The company’s Chief Legal Officer, Paul Grewal, has recently joined the board of the US-India Business Council (USIBC), strengthening its position in regulatory discussions and financial sector collaborations.
India’s crypto policies evolve
India has taken a hardline approach to cryptocurrency regulation, imposing a 30% tax on crypto earnings and a 1% tax deduction at source (TDS) on all transactions since 2022.
These measures led to a sharp decline in trading volumes, forcing many domestic and international exchanges to reconsider their operations in the country.
Recent developments suggest a potential shift in policy. Global trends and increasing institutional interest in digital assets have prompted discussions within Indian regulatory circles about revisiting existing tax and compliance frameworks.
While no immediate changes have been announced, policymakers are closely observing other jurisdictions to assess the feasibility of a more balanced regulatory approach.
Industry experts believe that easing restrictions could attract significant foreign investment and bolster India’s position as a major player in the global crypto market.
Binance leads, Coinbase follows
Binance, the world’s largest cryptocurrency exchange, successfully resumed operations in India in August 2024 after addressing compliance concerns.
The exchange’s ability to navigate regulatory requirements has set a benchmark for others, including Coinbase, which now faces the challenge of catching up in a market where Binance has already re-established itself.
With a growing number of Indian investors showing continued interest in digital assets despite regulatory uncertainty, the return of major global exchanges could lead to increased competition and market expansion.
Coinbase’s potential re-entry, if successful, would provide Indian traders with more choices and could accelerate the adoption of cryptocurrency in the country.
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