Coinbase, one of the leading cryptocurrency exchange platforms in the United States, has announced its imminent return to India. The announcement comes after obtaining registration with the country’s Financial Intelligence Unit (FIU). This move marks a significant step for the company, which had attempted to enter the Indian market already in 2022, but faced resistance from local authorities.
Summary
Coinbase: a decisive step for the return to India
Yesterday, Coinbase announced through its social channels that it has received approval to operate in India. In response, the chief legal officer of Coinbase, Paul Grewal, confirmed the registration with the FIU, describing it as an “important opportunity for Indian entrepreneurs” interested in developing, innovating, and growing their businesses in the world of blockchain.
Although the company has clarified its intention to offer exchange services for cryptocurrencies in India, it has not yet provided details on the exact timing for the official launch of operations.
The contribution of Coinbase for developers in India
According to John O’Loghlen, regional director for Asia-Pacific at Coinbase, the company’s presence in India could benefit not only cryptocurrency traders but also the country’s developer community. Thanks to the availability of advanced tools like the Base network, developers would have access to an innovative ecosystem that could facilitate the growth of blockchain-based projects.
Coinbase has been contacted for further details on the expansion plans in India, but at the moment has not released additional statements.
A return after the failure of 2022
Coinbase’s first attempt to enter the Indian market dates back to 2022, but it quickly stalled due to difficulties with the country’s central bank. At that time, the company had stated that it was willing to collaborate with the authorities to ensure compliance with local regulations and industry standards.
The Indian regulatory context on cryptocurrencies
India has had a complex relationship with the world of cryptocurrencies. The Financial Intelligence Unit, over the years, has adopted a rather strict stance, going so far as to ban several cryptocurrency exchanges.
According to the legal expert Amit Kumar Gupta, many Indian lawmakers view the cryptocurrency sector with suspicion, often associating it with gambling and illicit activities. This attitude explains the strict regulatory framework and the introduction of high taxes that risk hindering the growth of the sector.
However, with the global adoption of cryptocurrencies constantly growing, India might reconsider its position to avoid falling behind.
Cryptocurrencies and future in India
In February 2024, the economist Ajay Seth, Secretary of Economic Affairs of India, stated that cryptocurrencies “do not recognize borders,” suggesting the need for the country to adopt a more forward-looking approach.
Despite restrictive policies, India emerges as a leader in cryptocurrency adoption in the Central, Southern Asia, and Oceania (CSAO) region, according to a 2024 report by Chainalysis. The country stands out particularly for its strong involvement in retail trading and decentralized finance (DeFi).
A new chapter for Coinbase in India
The return of Coinbase in India could play a crucial role in the development of the cryptocurrency sector in the country. With ever-evolving regulation and growing interest in the sector, the success of the company will depend on its ability to collaborate with local authorities and adapt to existing regulations.
If Coinbase manages to establish a stable presence in the Indian market, local entrepreneurs and developers could benefit from greater integration with the global crypto landscape, opening up new possibilities for economic growth and technological innovation.
