Coinbase appears to be ready to re-enter India's crypto scene. The company officially announced it on March 11, 2025.
With recent FIU approval, Coinbase can register as a virtual digital asset supplier. Crypto-related companies offering the services must register with the Indian authorities to ensure compliance with the Anti-Money Laundering Act. The company is currently able to launch retail services domestically and plans to introduce investment products tailored to the Indian market.
The news follows the Securities and Exchange Commission (SEC), which stopped litigation against Coinbase a few weeks ago.
“India represents one of the most exciting market opportunities in the world today,” said John O'Loghlen, managing director of Asia Pacific at Coinbase.
Coinbase data shows a 12% jump in 2023 compared to 3% in 2018, with the number of blockchain developers from India. This data makes India the country with the largest number of blockchain developers in emerging markets.
India is one of the world's most dynamic markets for crypto and on-chain innovation.
We have registered with the Financial Information Unit (FIU) in India, allowing us to provide crypto trading services in the country.
– Coinbase
(@coinbase) March 11, 2025
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Coinbase attempts with Indian regulators
Coinbase began its operations in India in April 2022 and quickly faced regulatory hurdles.
The company initially relied on a unified payment interface (UPI) to allow users to convert rupees to crypto. However, Coinbase has halted most of its business activities in India after the Indian National Payment Corporation (NPCI) stated that it “doesn't know about crypto exchanges using UPI”.
Shortly after the company ceased its operations in India, Coinbase CEO Brian Armstrong said:
In 2018, the Reserve Bank of India (RBI) instructed lenders to refrain from working with the cryptocurrency sector. However, the Indian Supreme Court later reversed the decision in 2020. Despite reversing the RBI's previous decision, the central bank remained cautiously citing concerns about economic stability.
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Global cryptocurrency power plants back to India amid changing policy
In January 2024, the Indian government banned several crypto exchanges, including Binance, Bibit and Kucoin, in January 2024, as it did not comply with FIU anti-money laundering regulations. The ban on Kucoin was lifted after the company paid a fine of USD 41,000, but Binance had to pay USD 2.5 million to resume its operations in India.
Kraken also wants to make a comeback in the country. Vishesh Khurana, co-founder of logistics startup ShipRocket, advises the company on this effort.
India's crypto market could be set for exponential growth. The country's population is young, tech-savvy and crypto trading enthusiasts. However, national laws limit the regulations on digital assets.
A study conducted by the IMARC Group shows that the Indian market is currently projected to rise at around 18% per year over the next eight years, currently valued at around $2.6 billion.
However, combining 30% tax on cryptocurrencies with 1% tax deduction in the source (TDS) continues to create important barriers to new investors' entry.
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Key takeout
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Coinbase gets regulatory approval from the FIU to re-enter India's crypto market
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High taxation and transaction taxation remains a challenge for investors.
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Major exchanges such as Binance and Kucoin have also entered the Indian market after registering with the FIU.
Post Coinbase secures a comeback in India after receiving FIU approval and first appeared with 99 Bitcoin.
