Coinbase Re-enters Indian Market with FIU Approval

According to the latest reports, Coinbase is making its entry into the Indian crypto market by gaining approval from the Financial Intelligence Unit (FIU).

The latest statements from Coinbase itself indicate that the giant plans to launch retail trading services by the end of the year, followed by other products and investment opportunities.

Coinbase Back on Track in India

Coinbase failed to establish itself in India in 2022. However, its latest attempt to enter the Indian market was successful. The company said it will work with local regulators to ensure smooth and responsible cryptocurrency adoption in the country.
Coinbase said that gaining FIU approval is a key milestone for its global expansion plans, allowing it to focus on security, compliance and innovation in a regulated environment.

Current State of the Crypto Ecosystem in India

The crypto sector in India is going through a complex period. Although cryptocurrencies are not considered legal tender in the country, the buying and selling of digital assets is completely legal. Currently, Indian regulators impose a 30 per cent tax on profits from cryptocurrencies, with an additional 1 per cent withholding tax (TDS) for amounts above a certain threshold.

Coinbase considers India to be an emerging market with an innovative and cutting-edge blockchain user base. The Regional Director for APAC of Coinbase, John O'Loghlen, highlighted the country's potential, describing it as an exponential growth area. He emphasised Coinbase's commitment to operating within Indian regulations.

The return of Coinbase comes at a time when digital assets are increasingly gaining popularity in India. The Asian nation has also established itself as a global hub for on-chain development, with 12% of blockchain developers in 2023, up from 3% in 2018. In addition, India has the highest talent pool in on-chain development among emerging cryptocurrency markets.

John emphasised the strength of India's developer community, saying, however, that many local entrepreneurs have had to look abroad for opportunities to grow their businesses. In his view, cryptocurrencies can change this trend, allowing innovators to develop digital products directly in India while reaching a global audience.

"Too often, young Indian entrepreneurs have felt compelled to look abroad to build global businesses. Cryptocurrencies can change this reality. By expanding access to our trusted platform and tools like Base, we want to empower a new generation of builders to stay in their own country, innovate locally and expand globally, said John.