Summary
After more than a year away, Coinbase is actively working to re-enter the Indian market. The American crypto exchange is engaging with regulators like the Financial Intelligence Unit (FIU) to comply with local laws and restart operations. With India emerging as a major crypto hub and Binance successfully resuming services, Coinbase is now hoping to follow suit. Will they finally crack the Indian market this time?
Coinbase is making a comeback in India! After more than a year away, the American crypto giant is trying to re-enter the Indian market by working with regulators, including the Financial Intelligence Unit (FIU). Looks like they’re determined to navigate the compliance maze and get back into business in the world’s most populous country.
Breaking 🚨🚨
— Wise Advice (@wiseadvicesumit) February 13, 2025
Coinbase plans to re-enter the 🇮🇳 Indian #CRYPTO market pic.twitter.com/bSQUMrGQvG
What Went Wrong Last Time?
Back in April 2022, Coinbase tried to launch in India with much excitement, integrating the country’s go-to digital payments system, UPI. But that dream crashed just three days later when the National Payments Corporation of India (NPCI) refused to acknowledge the operation. Coinbase’s CEO, Brian Armstrong, later revealed they faced “informal pressure” from the Reserve Bank of India (RBI). And while crypto trading isn’t banned in India, banks avoid working with crypto firms to avoid regulatory troubles.
Why Is Coinbase Trying Again?
Well, the landscape is shifting. Binance, the world’s biggest exchange, managed to get back into India last August after registering with the FIU following a seven-month pause. This basically opened the doors for other global players to do the same. The FIU had previously called out major exchanges like Kraken and Binance for operating “illegally,” but since then, firms have been getting compliant to keep things running smoothly.
So What’s Coinbase Up To?
Coinbase is now jumping through the hoops to get all the necessary approvals, including an FIU license. No exact timeline yet, but they’re serious about playing by India’s rules this time. A Coinbase spokesperson told TechCrunch that they’re optimistic about the Indian market and want to fully comply with regulations.
India is becoming a massive hub for crypto and blockchain, and if Coinbase succeeds, it could be a game-changer. More legitimacy, more mainstream adoption, and maybe even a shift in how banks and institutions view crypto.
What’s in It for Indian Crypto Users?
If Coinbase does get back, traders might finally get a more secure and regulated platform to work with. It could also open the door for more institutional money to flow in. But let’s be real—challenges still exist. Banking restrictions, unclear tax rules, and sudden regulatory changes are always a concern.
This could be a big moment for crypto in India. If Coinbase pulls it off, other global exchanges might follow. Let’s see how this plays out.
Would you use Coinbase if it makes a return? Drop your thoughts in the comments!
