The global cryptocurrency landscape continues to evolve, and one of the most significant developments in recent months is Coinbase's official return to India. On March 11, the U.S.-based digital asset exchange confirmed it has received regulatory clearance from India’s Financial Intelligence Unit (FIU-IND)—marking a pivotal step in re-establishing its presence in one of the world’s fastest-growing crypto markets.
This move comes after a prolonged regulatory pause that led Coinbase to suspend operations in India in 2023. Now, with full compliance under the Prevention of Money Laundering Act (PMLA), the platform is poised to relaunch retail services later this year, followed by expanded investment tools and blockchain-based products tailored for Indian users.
👉 Discover how global crypto platforms are navigating India’s evolving digital asset regulations.
Regulatory Compliance Paves the Way for Re-Entry
India's financial regulators have taken a cautious but increasingly structured approach toward virtual digital assets (VDAs). In 2023, the Union government formally brought cryptocurrencies under the ambit of the Prevention of Money Laundering Act (PMLA), 2002, requiring all onshore and offshore crypto service providers to register with FIU-IND as reporting entities.
FIU-IND, operating under the Ministry of Finance, is responsible for monitoring suspicious financial transactions and sharing intelligence with domestic enforcement agencies and international counterparts. Registration with this body is now a mandatory prerequisite for any crypto exchange seeking to operate legally in India.
Coinbase’s successful registration signals not only its commitment to regulatory compliance but also reflects a broader trend of international platforms adapting to India’s evolving framework. The exchange joins other major players like Binance, which resumed operations in August 2023 after securing FIU-IND approval following a seven-month regulatory hiatus.
Filling the Gap in a Maturing Market
Coinbase’s return arrives at a critical juncture for India’s crypto ecosystem. The local market has faced turbulence in recent years, including high-profile security breaches such as the WazirX hack, which resulted in the loss of nearly half of the exchange’s reserves. That incident eroded user trust and created space for more compliant, globally recognized platforms to step in.
With over 150 million crypto users estimated across India—and growing interest among developers and institutional investors—the country represents a strategic frontier for blockchain innovation. Coinbase’s re-launch could help restore confidence while offering enhanced security, transparency, and access to advanced trading tools.
Notably, two of India’s top domestic exchanges—CoinSwitch and CoinDCX—already have strategic backing from Coinbase, underscoring the company’s long-term belief in India’s potential.
“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. We’re committed to building in markets that believe in the potential of crypto and onchain innovation,” said John O’Loghlen, Regional Managing Director for APAC at Coinbase.
Empowering Developers Through Onchain Innovation
Beyond retail trading, Coinbase is placing a strong emphasis on nurturing India’s developer community. The company plans to expand its crypto developer platform in the region, with initiatives centered around Base, its Ethereum Layer 2 blockchain designed to lower transaction costs and accelerate decentralized application (dApp) development.
By providing Indian builders with access to trusted infrastructure, developer tools, and educational resources, Coinbase aims to empower a new generation of innovators who can create locally relevant solutions while scaling globally.
This aligns with India’s growing reputation as a tech talent hub and positions blockchain development as a key driver of future digital transformation—complementing national efforts in areas like central bank digital currencies (CBDCs) and public-sector blockchain use cases.
👉 Explore how developer ecosystems are shaping the future of decentralized finance worldwide.
A Complex Regulatory Landscape
Despite increasing institutional adoption and regulatory clarity around anti-money laundering (AML) obligations, cryptocurrency remains in a gray area under Indian law. There is no comprehensive legal framework explicitly recognizing or licensing crypto assets as securities or currency.
However, the government has implemented strict tax measures since 2022:
- A 30% tax on crypto income
- A 1% Tax Deducted at Source (TDS) on every transaction
These policies reflect an effort to monitor capital flows and generate revenue, even in the absence of formal legalization. Meanwhile, regulatory scrutiny remains high, particularly concerning payment gateways.
In 2022, Coinbase initially launched services in India with support for Unified Payments Interface (UPI)—the country’s dominant real-time payment system. However, within days, operations were suspended after the National Payments Corporation of India (NPCI) clarified it had not authorized any crypto exchange to use UPI.
Reports also suggest that informal pressure from the Reserve Bank of India (RBI) played a role in the temporary withdrawal—a reminder of the ongoing tension between innovation and financial oversight.
Government Support for Blockchain, Not Necessarily Crypto
While mainstream tokens like Bitcoin and Ethereum face regulatory uncertainty, the Indian government has shown strong support for blockchain technology and central bank digital currencies (CBDCs).
The e-rupee, issued by the Reserve Bank of India, is being piloted across multiple use cases, including cross-border payments and retail transactions. This dual-track approach—embracing blockchain infrastructure while maintaining caution around decentralized cryptocurrencies—highlights a nuanced policy direction.
It also creates opportunities for compliant platforms like Coinbase to collaborate on educational initiatives, technical standards, and responsible innovation frameworks that align with national priorities.
Frequently Asked Questions (FAQ)
Q: Why did Coinbase leave India initially?
A: Coinbase suspended operations in 2023 after facing regulatory challenges related to UPI payments and informal pressure from Indian financial authorities, despite launching retail services briefly in 2022.
Q: Is cryptocurrency legal in India?
A: Cryptocurrency is not illegal, but it lacks a formal regulatory framework. It is subject to taxation (30% on gains + 1% TDS), and exchanges must comply with AML laws via FIU-IND registration.
Q: What services will Coinbase offer in India?
A: Initially, retail trading services will be launched, followed by investment products and developer tools like Base to support local blockchain innovation.
Q: How does FIU-IND registration benefit users?
A: Registration ensures exchanges follow anti-money laundering protocols, enhancing security, transparency, and trust for Indian investors.
Q: Can Indians use international crypto exchanges now?
A: Yes, provided the exchange is registered with FIU-IND. Platforms like Coinbase and Binance have resumed operations after achieving compliance.
Q: Will Coinbase support UPI again?
A: Not currently confirmed. Previous UPI integration was halted due to NPCI guidelines. Future payment methods will depend on regulatory approvals.
👉 Stay ahead of regulatory shifts shaping crypto access in emerging markets.
Looking Ahead: A New Chapter for Crypto in India
Coinbase’s return symbolizes more than just a corporate comeback—it reflects growing alignment between global crypto platforms and emerging-market regulators. As India continues refining its stance on digital assets, compliant players are well-positioned to lead education, adoption, and technological advancement.
With strong developer engagement, regulatory adherence, and strategic partnerships, Coinbase is setting the stage for sustainable growth in one of the most dynamic fintech environments in the world.
For Indian users, this means greater access to secure, transparent, and innovative financial tools—ushering in a new era of onchain empowerment built on trust, compliance, and long-term vision.
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