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Coinbase Considers Path to Reentry in India Amid Regulatory Challenges and Market Dynamics
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Coinbase is set to reenter the Indian market after addressing regulatory hurdles faced since 2022, aiming to boost its global footprint.
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Despite its previous challenges, Coinbase is engaging proactively with Indian regulators to ensure a compliant launch this time around.
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Market analysts predict that Coinbase’s return could introduce significant liquidity to the Indian crypto market, altering the competitive landscape.
Coinbase plans to reenter the Indian crypto market after addressing regulatory challenges, potentially reshaping competition and increasing liquidity in the sector.
Coinbase Mulls Reentry in Indian Market
Initially, Coinbase launched in India with a promising start in April 2022 by integrating with the popular United Payments Interface (UPI). However, the very next day, the National Payments Corporation of India (NPCI) denied the legitimacy of its operations, leading to a swift suspension of services.
The regulatory landscape in India has been challenging for crypto businesses, primarily due to its strict tax regime, which includes a **30% tax** on crypto gains and a **1% TDS** on transactions. These policies have dampened enthusiasm among retail investors and reduced overall market liquidity.
International exchanges, including major players like **Binance** and **Kraken**, have faced issues with compliance. Some have adapted to local regulations, with Binance regaining operational status in India after meeting the necessary requirements. Coinbase is following suit, actively pursuing regulatory approval.
While the timeline for Coinbase’s relaunch is not yet clear—dependent on the acquisition of an FIU license and other regulatory approvals—analysts are optimistic regarding its potential impact.