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Sujit Kumar
Feb 13, 2025
by Sujit Kumar

Coinbase Eyes Reentry into India Amid Regulatory Engagement

Coinbase Eyes Reentry into India

Table of contents

  1. Background and Regulatory Hurdles
    1. Renewed Optimism and Future Prospects
Coinbase, the largest U.S.-based crypto exchange, is actively exploring a return to the Indian market after suspending its operations in 2022 due to regulatory challenges. The company is engaging with key Indian authorities, including the Financial Intelligence Unit (FIU), to secure the necessary approvals and ensure compliance with local regulations.

Background and Regulatory Hurdles

Coinbase initially entered India with much fanfare in April 2022, launching support for the country’s popular United Payments Interface (UPI). However, just three days later, the National Payments Corporation of India (NPCI) refused to recognize Coinbase’s operations, leading to a swift suspension of services. Additionally, India's strict tax policies—including a 30% tax on crypto income and a 1% transaction levy—have long discouraged retail investment and hindered liquidity for foreign exchanges.

Other major players like Binance and Kraken have faced similar regulatory scrutiny in India. Notably, Binance eventually resumed operations after complying with FIU requirements, setting a potential precedent for Coinbase.

Renewed Optimism and Future Prospects

Coinbase is now taking a similar approach, actively working to obtain an FIU license and meet all regulatory obligations. While the timeline for its relaunch remains uncertain, industry analysts are optimistic. “Huge liquidity could flow in from this,” noted analyst Kyle Chassé, highlighting the potential market impact.

Coinbase’s positive news has already influenced its market perception, with Coinbase stock (COIN) trading at $274.80 as of this writing. If successful, a reentry into India could unlock significant liquidity and further expand Coinbase’s global footprint in the crypto space.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Coinbase Eyes Reentry into India
Coinbase Eyes Reentry into India Amid Regulatory Engagement
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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