- Coinbase is engaging with Indian regulators, including the FIU, to plan its market re-entry.
- The exchange's previous 2022 attempt ended after three days due to regulatory pressures.
- The move follows Binance's successful return to India and comes amid Coinbase's global expansion plans.
Coinbase, the American cryptocurrency exchange, is actively working on re-entering the Indian market, initiating discussions with key regulatory bodies including the Financial Intelligence Unit (FIU).
The move comes in the wake of competitor Binance's successful return to India last August after complying with local regulatory requirements.
The exchange's renewed interest follows its previous short-lived attempt in 2022, when it launched services with UPI support but suspended operations just three days later.
CEO Brian Armstrong later revealed that "informal pressure" from the Reserve Bank of India had led to the trading halt.
This potential comeback is being shaped by recent regulatory developments, particularly Binance's successful registration with the FIU, which has established a precedent for foreign crypto exchanges in India.
However, challenges remain, including the country's stringent crypto taxation policy, which imposes a 30% tax on crypto income and a 1% deduction per transaction.
While cryptocurrency trading remains legal in India, the sector faces significant operational hurdles, with many banks reluctant to serve virtual asset firms due to perceived central bank disapproval.
The timing of Coinbase's relaunch will largely depend on securing necessary approvals, including the crucial FIU license.
The move aligns with Coinbase's broader international expansion strategy and could help fill the market gap left by the collapse of the Indian exchange WazirX.
Notably, Coinbase already maintains an indirect presence in the market through its investments in leading Indian crypto exchanges CoinSwitch and CoinDCX.
Edited By Annette George
