The Financial Intelligence Unit has authorized U.S.-based Coinbase to resume its operations in India as a cryptocurrency exchange. The exchange announced that the authority granted them authorization to offer crypto trading services but their launch would extend into this year focusing on customers at first. The statement from Coinbase mentioned future investments and product growth plans for the Indian market.

“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.”

John O’Loghlen, regional managing director for APAC at Coinbase

The business tries operations in India for the second time. In April 2022 Coinbase started offering UPI support to Indian users then stopped operations three days later. The Reserve Bank of India applied informal pressures and the National Payments Corporation of India disapproved of the exchange’s services due to their decision. 

Coinbase Enters Indian Market

Coinbase now pays more attention to India since the country secured its position as a top digital economy. India develops technology at a fast pace and supports thriving startup companies because the percentage of global developers from India rose from 3% in 2018 to 12% in 2023. According to the company India represents an advantageous market because its officials support cryptocurrency developments through protective regulations.

“India’s developer community and entrepreneurial energy are unmatched. But too often, young Indian entrepreneurs have felt forced to look abroad to build global companies. Crypto can change that.”

John O’Loghlen

The exchange has chosen India to help advance its global strategy through managing market entry hurdles while expanding its business presence worldwide. The company is working hard to receive regulatory licenses in different nations to strengthen its worldwide market leadership. 

The company made its announcement at the same time market participants showed major levels of activity. ARK Invest made an investment of $10.5 million in 64,000 Coinbase shares on March 10 just before the company revealed its plans to enter India’s market. During this time Coinbase’s stock price dropped 17.58% in value because of risks affecting the entire market.

Coinbase Faces Regulatory Challenges

India takes a controlling approach to crypto because it continues to tighten tax rules at the same time government officials talk about putting digital assets under proper legal protection. The government puts 30% tax on cryptocurrency profits and requires 1% tax to be taken out during exchanges which lowers trading numbers on Indian platforms. The rise of blockchain and DeFi interest makes India a promising destination for international crypto companies to enter.

The FIU’s approval of Coinbase suggests that India is changing its policies toward cryptocurrency regulation. The authorities are still adjusting their views about digital assets although their present development represents an important progress. The exchange requires expert ability to handle business laws and create steady operations across India to achieve ongoing growth.

After acquiring regulatory approval from the FIU the crypto community along with investors will assess Coinbase’s upcoming business activities. Ideas about bitcoin growth will depend on the exchange’s work progress in India. Coinbase must work closely with Indian authorities as the local regulations change to keep expanding its digital market operations in this rapidly developing economy.