Coinbase Secures FIU Approval, Set to Relaunch in India
Global cryptocurrency exchange Coinbase is gearing up for a strong re-entry into the Indian market after securing approval from India’s Financial Intelligence Unit (FIU). This regulatory clearance allows Coinbase to legally operate as a Virtual Digital Asset (VDA) service provider, ensuring compliance with anti-money laundering laws.
Coinbase announced its plan to resume retail trading services in India later this year, with new investment products tailored to Indian investors. This marks a significant milestone for the company, which had previously attempted to launch in India in 2022 but faced regulatory hurdles.
Regulatory Approval: A Fresh Start for Coinbase
With FIU registration, Coinbase is now officially compliant with India’s digital asset regulations, allowing it to offer its services in a structured and legally sound manner. John O’Loghlen, Coinbase’s Regional Managing Director for APAC, emphasized that India is a key market for the exchange due to its rapidly expanding blockchain developer community and growing crypto adoption.
Coinbase’s Regulatory Struggles in India
Coinbase first entered India in April 2022, launching crypto trading with Unified Payments Interface (UPI) support. However, shortly after, the National Payments Corporation of India (NPCI) stated it was “not aware of any crypto exchange using UPI”, leading Coinbase to suspend most of its Indian operations.
Coinbase CEO Brian Armstrong had previously commented on India’s uncertain regulatory stance, noting that while the Supreme Court ruled against banning crypto, regulatory bodies like the Reserve Bank of India (RBI) remained skeptical about digital assets.
Despite the Supreme Court overturning RBI’s crypto ban in 2020, the central bank continues to warn against potential risks to financial stability.
Why Coinbase Sees India as a Key Market?
India is the world’s second-largest crypto market by adoption, despite its 30% tax on crypto gains and 1% TDS deduction on transactions.
Coinbase highlights India’s growing blockchain ecosystem, where the share of on-chain developers has increased from 3% in 2018 to 12% in 2023. The country now has one of the largest pools of blockchain developers, making it a strategic hub for innovation and crypto adoption.
"Too often, young Indian entrepreneurs have looked overseas to build global companies. Crypto can change that," said O’Loghlen. "With our platform and tools like Base, we aim to empower innovators to scale their projects globally while staying in India."
What’s Next for Coinbase in India?
With regulatory approval secured, Coinbase is expected to introduce:
Retail trading services with INR support.
Institutional-grade crypto solutions for businesses.
Developer tools and blockchain infrastructure to support India’s Web3 ecosystem.
Coinbase’s compliance-driven approach signals a more structured and sustainable entry into India’s crypto market. The FIU approval is a crucial step, but the exchange must continue navigating India’s evolving regulations to establish long-term success.
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