Coinbase Secures Comeback In India After Receiving FIU’s Approval

Coinbase seems ready to re-enter the Indian crypto scene. Following important regulatory clearances from the anti-money laundering agency, the Financial Intelligence Unit (FIU), the company formally made its announcement on 11 March 2025.

With the recent FIU approval, Coinbase will be able to register as a virtual digital asset supplier. Any crypto-related company offering services must register with the Indian authorities to guarantee adherence to its anti-money laundering laws. The company can now launch its retail services in the country and plans to introduce investment products tailored to the Indian market.

The news follows the US Securities and Exchange Commission (SEC) dropping a lawsuit against Coinbase just a few weeks back.

John O’Loghlen, managing director for Asia-Pacific at Coinbase said, “India represents one of the most exciting market opportunities in the world today.”

Coinbase’s data showcases a jump of 12% in 2023 compared to 3% in 2018 in the number of blockchain developers from India. This data makes India the country with the largest number of blockchain developers in emerging markets.

India represents one of the world’s most dynamic markets for crypto and onchain innovation.

We have registered with India’s Financial Intelligence Unit (FIU), enabling us to offer crypto trading services in the country.

— Coinbase (@coinbase) March 11, 2025

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Coinbase’s Tryst with the Indian Regulatory Authorities

Coinbase initiated its operations in India in April 2022 and immediately faced regulatory hurdles.

The company had initially relied on the Unified Payments Interface (UPI) to allow users to convert Rupees to crypto. However, Coinbase suspended most of its business activities in India after the National Payments Corporation of India (NPCI) stated that it was “not aware of any crypto exchange using UPI.”

Soon after the company suspended their operations in India, Brian Armstrong, CEO at Coinbase had said, “India is a unique market in the sense that the Supreme Court has ruled that they can’t ban crypto, but there are elements in the government there, including at Reserve Bank of India, who don’t seem to be as positive on it.”

In 2018, the Reserve Bank of India (RBI) instructed lenders to refrain from cooperating with the cryptocurrency sector. However, India’s Supreme Court later reversed this decision in 2020. Despite reversing RBI’s earlier decision, the Central Bank has remained cautious, citing concerns about economic stability.

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Global Crypto Powerhouses Returning To India Amid Policy Shifts

The Indian government banned several crypto exchanges, including Binance, Bybit and KuCoin, in January 2024 from operating in the country as they did not comply with the FIU’s anti-money laundering regulations. The ban on KuCoin was lifted after the company paid a fine of US $41,000, while Binance had to shell out US $2.5 million to resume its operations in India.

Kraken, too, is looking to make a comeback in the country. Vishesh Khurana, co-founder of Shiprocket, a logistics startup, is advising the company on this endeavour.

The Indian crypto market is potentially set for exponential growth. The country’s population is young, tech-savvy and consists of crypto trading enthusiasts. However, the laws of the nation have kept a chokehold over the regulation of digital assets.

According to studies done by the Imarc Group, the Indian market is currently predicted to rise at roughly 18% yearly over the next eight years, which is currently assessed to be around $2.6 billion.

However, a 30% tax on cryptocurrencies combined with a 1% tax deductible at the source (TDS) continues to create a significant barrier to entry for new investors.

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The post Coinbase Secures Comeback In India After Receiving FIU’s Approval appeared first on 99Bitcoins.