After a failed attempt in 2022, Coinbase is gearing up for a comeback in India. The U.S.-based cryptocurrency exchange has obtained approval from India’s Financial Intelligence Unit (FIU), paving the way for its relaunch in the country.
Coinbase Gains Regulatory Approval
On March 11, Coinbase announced on social media that it had secured FIU registration, a key requirement for operating in India. The company’s chief legal officer, Paul Grewal, highlighted the significance of this milestone, stating that it marks a major step toward supporting Indian entrepreneurs in building and scaling global blockchain businesses.
Although Coinbase confirmed its plans to resume crypto trading services in India, it has not provided a timeline for the rollout. The company’s APAC regional managing director, John O’Loghlen, emphasized that India’s developer community stands to benefit from Coinbase’s offerings, including its Base network.
Coinbase initially entered the Indian market in 2022 but had to halt its services within days due to regulatory roadblocks from the country’s central bank. At the time, the exchange expressed its commitment to working with authorities to align with local regulations and industry norms.
India’s Changing Stance on Crypto
India has had a turbulent relationship with cryptocurrency, with the FIU banning multiple exchanges over the years. Legal expert Amit Kumar Gupta notes that many lawmakers still view the industry negatively, associating it with gambling and illegal activities. This sentiment has driven policies like strict tax laws that some see as an attempt to discourage crypto use.
However, as global adoption accelerates, India risks falling behind. Economic Affairs Secretary Ajay Seth recently acknowledged that cryptocurrencies “don’t believe in borders,” indicating a potential shift in policy to embrace the sector’s growth.
Despite past regulatory hurdles, India leads the Central, Southern Asia, and Oceania (CSAO) region in crypto adoption, according to a 2024 Chainalysis report. The country scored particularly high in retail and decentralized finance adoption, reinforcing its position as a key player in the global crypto ecosystem.
