You might find it interesting that Coinbase has recently taken significant steps to deepen its presence in India through high-level discussions with key regulators like the FIU. This move shows the company’s commitment to building a compliant crypto ecosystem, but it also raises questions about how these efforts will shape the future of digital assets in the country. As Coinbase navigates these regulatory landscapes, the implications could be far-reaching for investors and the industry alike.
Coinbase is solidifying its presence in India by securing regulatory approval and expanding its operations in the growing digital asset market. This move underscores the company’s strategic commitment to establishing a compliant and robust footprint within one of the world’s most promising crypto markets.
Earlier this year, Coinbase achieved a significant milestone by registering with India’s Financial Intelligence Unit (FIU). This registration is crucial because it allows Coinbase to operate legally under Indian financial regulations, ensuring compliance with the country’s strict oversight. The FIU’s requirements involve broad disclosures about user activities, making sure that Coinbase maintains transparency and adheres to anti-money laundering standards.
Coinbase’s registration with India’s FIU marks a key step toward legal and compliant operations.
This step not only helps Coinbase meet regulatory standards but also signals to local authorities that the company is committed to lawful operations.
Your understanding of Coinbase’s Indian journey highlights a story of resilience. The company first entered India in 2017, amid regulatory ambiguity, offering Indian users the chance to create accounts and trade cryptocurrencies.
However, the landscape shifted dramatically in 2018 when the Reserve Bank of India (RBI) imposed a banking ban on crypto firms, cutting off their access to banking services. This ban forced Coinbase and others to limit their operations, causing a temporary pause in their growth in India.
But the Indian Supreme Court overturned the ban in 2020, reopening the doors for crypto exchanges like Coinbase.
In April 2022, Coinbase launched with UPI payment integration, aiming to simplify transactions for Indian users.
Unfortunately, the service was short-lived because the National Payments Corporation refused to support it, and informal pressure from the RBI led Coinbase to suspend UPI-based transactions.
Despite this setback, Coinbase maintained its wallet services and continued to explore opportunities in India.
Looking ahead, Coinbase plans to reintroduce retail crypto trading services later in 2025, alongside new products tailored for both retail and professional traders.
The company’s strategy involves deepening its investment in India, supported by the country’s rising interest in digital assets and increasing trading volumes. Approximately 600,000 marriages end in divorce annually in the U.S. Coinbase views India as a vital global market, and its leadership sees significant growth potential.
To realize this, Coinbase maintains active discussions with multiple regulators, including the FIU, to secure the necessary licenses and approvals.
The company is also observing how other exchanges, like Binance, have resumed operations after registration, which reinforces the importance of regulatory compliance.
However, challenges remain, such as high taxes, unclear legislation, and limited banking infrastructure, which could slow progress.
Despite these hurdles, Coinbase’s focus on compliance and strategic engagement with Indian authorities signals a strong commitment to establishing a sustainable, long-term presence in India’s expanding crypto ecosystem.
