Coinbase India Plans Relaunch After Year-Long Pause

Coinbase, one of the largest U.S. crypto exchanges, is gearing up for a return to the Indian market after more than a year on the sidelines. The company had to pause operations due to regulatory hurdles, but now, it’s making a fresh attempt – this time with a stronger focus on compliance.

With India reassessing its crypto policies, could this be the right moment for Coinbase to make a comeback? Here’s everything you need to know about Coinbase’s latest move and the road ahead.

Regulatory Talks in Progress

According to TechCrunch, Coinbase is in discussions with Indian authorities, including the Financial Intelligence Unit (FIU), which oversees financial transactions. The company is focused on meeting regulatory requirements and remains optimistic about resuming operations.

A Coinbase spokesperson stated:

“We are excited about the opportunities in India and are committed to complying with local regulations.”

Strengthening India Ties

Coinbase’s renewed interest in India is part of its broader global expansion. Recently, its Chief Legal Officer, Paul Grewal, joined the board of the U.S.-India Business Council (USIBC), strengthening financial sector ties between the two countries.

The exchange had stopped onboarding new users in India in June 2023 due to regulatory challenges. Despite India’s strict stance on digital assets, crypto adoption in the country continues to grow.

Challenges in the Indian Market

Coinbase first entered India in April 2022, introducing support for the Unified Payments Interface (UPI). However, just three days later, the National Payments Corporation of India refused to acknowledge its operations, forcing the company to suspend services.

Since then, India has implemented heavy taxes on crypto, including a 30% tax on income from digital assets and a 1% tax on every transaction. These measures have discouraged many investors, but with global regulatory changes, India may take a more flexible approach in the future.

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Binance Paves the Way

Coinbase’s biggest competitor, Binance, successfully resumed operations in India in August 2023 after resolving compliance issues. This proved that global exchanges could operate in India if they met regulatory requirements.

With Binance already back and Coinbase working on its return, India’s crypto market could see fresh momentum. If Coinbase succeeds, Indian traders will have more options, potentially boosting crypto adoption in the country.

With Binance already back and Coinbase preparing its move, India’s crypto sector may be in for an interesting shake-up.