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Coinbase Registers with India’s Financial Intelligence Unit

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  • Coinbase secures FIU registration, expanding crypto services in India.
  • Plans to launch retail services and expand investment in India.
  • Company aims to empower crypto developers and entrepreneurs with innovative tools.

Coinbase has officially registered with India’s Financial Intelligence Unit (FIU) to enable the exchange to offer crypto trading services in the country. This registration establishes the company’s presence in one of the world’s most dynamic markets for cryptocurrency. The exchange plans to launch its retail services in India later this year, with further investment and product offerings.

Coinbase Expands Operations in India 

India is emerging as a global technology hub which has attracted a growing number of crypto developers. Coinbase’s decision to enter the Indian market highlights the country’s role in blockchain and crypto innovation. The firm’s registration with the FIU shows a commitment to comply with local regulations and foster responsible growth in the region.

India’s developer community has shown significant growth in recent years. The country’s share of global developers in the blockchain space has risen from 3% in 2018 to 12% in 2023. Coinbase views this growth as a major opportunity to support local developers and entrepreneurs to build global crypto solutions from India.

Moreover, Coinbase aims to provide access to its trusted platform and tools like Base with the company’s expansion to India. These resources will allow Indian entrepreneurs to innovate locally as well as scale their projects globally. The company believes that crypto can enhance economic freedom and technological advancement.

Coinbase’s expansion aligns with the company’s mission to increase economic independence worldwide. The exchange seeks to create a vibrant ecosystem for crypto and blockchain development in India. This is part of the company’s vision to enable developers to grow their local markets and achieve global success.

International Expansion

The company’s commitment to India extends beyond its regulatory registration. Coinbase’s Chief Legal Officer, Paul Grewal, recently joined the Board of the U.S-India Business Council (USIBC). This appointment underscores the company’s dedication to strengthen the U.S-India economic relations and enhance cross-border commercial growth.

Coinbase’s registration with the FIU marks a major step in its long-term international expansion strategy. The company aims to offer crypto services in a safe and compliant environment that adheres to local laws. The registration enables the exchange to offer crypto trading India’s market, where the demand for digital assets continues to rise.

Coinbase aims to contribute to India’s efforts to become a leader in blockchain and crypto innovation. The company works closely with regulators to ensure the responsible development of the industry and offer secure trading platforms for users in India. 

Coinbase Seeks Approval for Bold Comeback into India’s Crypto Market in 2025

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  • Coinbase works with India’s FIU to meet regulatory requirements.
  • India reviews crypto regulations, influenced by global trends.
  • Coinbase aims to tap into India’s growing Web3 ecosystem.

Coinbase is set to return to India’s growing crypto space, engaging with regulators like the Financial Intelligence Unit. As India revises its policies on crypto, the exchange seeks to capitalize on the country’s expanding digital ecosystem.

Coinbase Targets India’s Comeback

Coinbase plans to re-enter the Indian market after a hiatus of over a year. The company is engaging with Indian authorities, including the Financial Intelligence Unit (FIU), to obtain regulatory approvals. This move comes as India revisits its approach to cryptocurrency, influenced by global regulatory changes.

Coinbase halted operations in India in June 2023 due to regulatory challenges. Local banks have remained cautious about involvement with crypto exchanges to maintain a favorable relationship with the Reserve Bank of India. In 2022, Coinbase faced difficulties launching its services when the National Payments Corporation of India (NPCI) refused to acknowledge its platform.

Regulatory Compliance

The company seeks to comply with local financial regulations and secure a license from the FIU. India’s government is reviewing its cryptocurrency policies, especially in light of global developments. Economic Affairs Secretary Ajay Seth said that India must adopt a comprehensive approach that factors in international trends, as cryptocurrencies are borderless assets.

The exchange has expressed its excitement about the opportunities in India and its commitment to comply with the local regulatory framework. However, the company has not disclosed the status of its registration with the FIU. Coinbase’s renewed focus on India is part of its broader international expansion strategy.

India Crypto Market Attracts International Exchanges

India has become an attractive market due to the growing interest in cryptocurrencies despite the regulatory challenges.. The Indian government imposes a 30% tax on capital gains from crypto investments as well as a 1% tax-deducted-at-source (TDS) on transactions. These policies continue to impact the operations of crypto exchanges in the country.

Coinbase’s potential comeback follows a similar move by Binance, which resumed operations in India after meeting FIU requirements in mid-2024. Binance’s successful return has set a precedent for Coinbase as it seeks to re-establish itself in the market. The timing of the exchange’s re-entry depends on how long it takes to secure the necessary approvals.

As Indian exchanges like CoinSwitch and CoinDCX continue to grow, Coinbase’s re-entry could provide users with diverse opportunities and strengthen competition in the Indian crypto market. These platforms have benefited from rising crypto adoption despite the regulatory uncertainty in India.

Global Expansion

The exchange has made strides in global expansion, with recent regulatory approvals in the UK. The company’s efforts in India align with its goal of tapping into the country’s growing Web3 ecosystem. Coinbase’s Chief Legal Officer, Paul Grewal, recently joined the board of the U.S.-India Business Council, reinforcing its commitment to strengthening ties between the U.S. and India.

FIU Notice Spurs Shift: Indian Crypto Exchanges Draw In Binance And OKX Investors

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In response to the Financial Intelligence Unit’s (FIU) issuance of a notice of noncompliance against 10 foreign crypto exchanges on December 28, 2023, Indian crypto exchanges are now presenting enticing options for investors looking to transfer their crypto assets from banned offshore platforms. The Ministry of Finance Financial Intelligence Unit had imposed a ban on off-shore crypto exchanges such as Binance and OKX.

Several prominent Indian crypto exchanges have introduced appealing fee waiver deals to assist users facing challenges in moving their funds from prohibited foreign crypto exchanges. CoinDCX, a major player in the Indian crypto market based on trading volume, declared that it has allocated $1 million to facilitate the transfer of assets to compliant crypto exchanges.

Approximately USD 4 billion is currently invested by Indian investors in offshore crypto exchanges. In light of the recent regulatory developments and the ban on offshore exchanges, users are expressing concerns about the safety of their assets. They are actively seeking secure and compliant alternatives to sustain their crypto endeavors. Sumit Gupta, CEO of CoinDCX, shared insights on this matter with tronweekly, emphasizing the importance of ensuring a smooth transition for users amid these regulatory changes.

‘We have witnessed a remarkable 2000% surge in new inflows within the initial week following the issuance of show cause notices to non-compliant entities. In a bid to reinforce trust within the crypto community, CoinDCX has allocated a $1 million fund to assist investors in transferring assets from non-compliant offshore exchanges to the CoinDCX platform. The exchange is actively supporting users through seamless crypto deposits, accompanied by a 1% bonus, and has opened secure deposit routes for a smooth transition.”

Subsequently, BuyUcoin, another Indian crypto exchange, disclosed its initiative of facilitating zero-fee transfers for users moving their assets from offshore exchanges following the FIU ban. CEO Shivam Thakral expressed to Tronweekly that they view the FIU’s decision as a positive measure in safeguarding investor interests and upholding regulations governing capital flow in the context of foreign exchange entities.

FIU Acknowledgment: WazirX’s Bonus Spurs Surge In Crypto Activity

In a similar vein, WazirX, a prominent exchange, introduced a 1% bonus for users transferring their crypto holdings to the platform. This move resulted in a noteworthy surge, with a 42.3% increase in peer-to-peer transactions, a substantial 253% rise in spot trading volume, and a remarkable 114% uptick in overall deposits (comprising both crypto and INR) from November to January, compared to the preceding three months. Rajagopal Menon, vice president of WazirX, conveyed to Tronweekly that the recent actions taken by the FIU were overdue and necessary for the market.

“I think it was long overdue. Foreign exchanges were making merry at the expense of Indian exchanges because of regulatory and tax arbitrage. It was a bad situation for everybody: Indian users had no recourse, the government lost tax revenue, and Indian exchanges lost market share.”

The Financial Intelligence Unit (FIU), a division of the Indian Finance Ministry, issued a notice of non-compliance to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex for allegedly conducting illegal operations in India on December 28, 2023. Providing a one-week window for crypto exchanges to respond, the FIU recommended the IT department to block the URLs of the mentioned foreign crypto exchanges in case of non-compliance.

Around two weeks after the FIU notice, on January 10, Apple’s Indian app store took the step of blocking all foreign crypto exchanges, while the Android app store still hosted them. Subsequently, within a week, these foreign crypto exchanges were also barred from Google’s app store. This development caused anxiety among Indian users who had turned to foreign exchanges like Binance to avoid a hefty 30% crypto tax.

Various Indian crypto influencers deliberated alternative methods for users to access the banned platforms in India, including through virtual private networks. However, BuyUcoin cautioned against such approaches, citing potential severe consequences for Indian users, such as the risk of losing their crypto assets or money to phishing sites and other online scams.

In response to the regulatory changes, OKX has reportedly initiated the process of requesting Indian users to update their personal information to align with local regulations, indicating a shift towards compliance with the FIU’s directives.