Coinbase is making a comeback in India. After facing regulatory roadblocks in 2022, the U.S.-based crypto exchange has now officially registered with India’s Financial Intelligence Unit (FIU)—a move that allows it to offer trading services legally in the country.
In a statement on Tuesday, Coinbase confirmed its plans to relaunch its retail trading platform in India later this year, with additional investment and new product offerings in the pipeline. This marks the company’s second attempt at entering the Indian market after its initial expansion efforts were abruptly halted.
What Went Wrong in 2022?
Back in April 2022, Coinbase introduced crypto purchases via India’s Unified Payments Interface (UPI), making it easier for users to buy digital assets using rupees. However, just three days later, the National Payments Corporation of India (NPCI) issued a public statement saying it was “not aware” of any exchange using the UPI network. The announcement led Coinbase to suspend the service immediately, halting its growth plans in the country.
Now, with its new FIU registration, Coinbase is signaling that it’s ready to play by the rules and build a long-term presence in India.
Why India?
Despite India’s strict crypto regulations, Coinbase sees massive potential in the market. The company pointed to India’s growing blockchain developer base, noting that the country’s share of global blockchain developers has jumped from 3% in 2018 to 12% in 2023—the highest among emerging markets.
“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations,” said John O’Loghlen, Coinbase’s Regional Managing Director for APAC.
Challenges Ahead: Crypto Taxes & Market Conditions
While Coinbase has cleared a major regulatory hurdle, its biggest challenge in India remains the country’s harsh tax regime on crypto:
- 30% tax on digital asset gains
- 1% tax deducted at source (TDS) on every crypto transaction
These tax rules, introduced in 2022, caused a significant drop in trading volumes as high-frequency traders and market makers moved to offshore exchanges.
Despite these conditions, global exchanges like Binance, KuCoin, and Bybit have all registered with India’s FIU, joining Coinbase in making a calculated bet on the country’s long-term crypto potential.
What’s Next?
With Coinbase securing its legal registration, the big question is how it will navigate India’s strict tax laws and re-enter the market successfully. Will it bring new partnerships? Introduce innovative products? Or push for more regulatory clarity?
For now, Coinbase is back in India—and this time, it’s playing by the rules.
