Coinbase has announced its renewed push into the Indian cryptocurrency market, having secured registration with India’s Financial Intelligence Unit (FIU). This move signals a significant step in the company’s efforts to expand its global presence, particularly in a market with substantial growth potential.
The FIU registration is crucial as it allows Coinbase to operate in compliance with India’s anti-money laundering regulations. This regulatory milestone follows a previous, short-lived attempt by Coinbase to establish its services in India in 2022, which was hampered by regulatory uncertainties surrounding the use of the Unified Payments Interface (UPI).
Coinbase’s plans involve launching its initial retail services later in 2025, with further investments and product offerings to follow. The company’s leadership has emphasized its commitment to working within the Indian regulatory framework and its enthusiasm for the opportunities presented by the Indian market.
The company also highlighted the importance of India’s growing developer community, expressing its intention to provide tools and platforms, such as its Base network, to empower local innovators. Coinbase aims to foster an environment where Indian entrepreneurs can build and scale global on-chain businesses from within India.
This re-entry occurs within the context of evolving regulations for virtual digital assets (VDAs) in India. The Indian government has brought VDAs under the Prevention of Money Laundering Act (PMLA), 2002, requiring VDA service providers to register with the FIU. This regulatory shift has prompted several foreign crypto exchanges to seek compliance and re-establish their presence in the country.
Coinbase’s move is seen as a positive development for the Indian crypto ecosystem, potentially bringing increased competition and innovation to the market. However, challenges remain, including India’s relatively high tax regime for cryptocurrency transactions.
