Coinbase Registers with India’s FIU, Resumes Crypto Trading After 2-Year Hiatus

Coinbase, a prominent US-based cryptocurrency exchange, has announced its registration with India’s Financial Intelligence Unit (FIU). This move marks a significant step in Coinbase's international expansion strategy, as it plans to resume its crypto trading services in India after a two-year hiatus. The exchange aims to launch its initial retail services later this year, with additional products to follow.

The FIU, India’s anti-money laundering watchdog, oversees all crypto exchanges operating in the country. Several digital asset trading platforms, including CoinDCX and Binance, have already registered with the FIU. Coinbase’s decision to re-enter the Indian market comes after it ceased operations in 2022 due to unfavorable digital asset regulations and informal pressure from India’s central bank.

John O’Loghlen, Regional Managing Director for APAC at Coinbase, emphasized the company’s commitment to markets that believe in the potential of crypto and onchain innovation. He stated, “We’re committed to building in markets that believe in the potential of crypto and onchain innovation. 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.”

India’s emergence as a global technology powerhouse makes it an attractive market for Coinbase’s expansion. The country has become a major hub for on-chain development, increasing its share of global developers from 3% in 2018 to 12% in 2023. This growth aligns with Coinbase’s strategy to invest in regions with a strong technological foundation and regulatory compliance.

Coinbase’s re-entry into India coincides with significant changes in crypto regulations in the US. The recent victory of US President Donald Trump in the November 2024 election has provided relief for US-based exchanges like Coinbase, Gemini, and Kraken. In February, the US Securities and Exchange Commission (SEC) dropped its enforcement case against Coinbase, further buoying the exchange’s push for global expansion.

Coinbase’s plans for global expansion are supported by a positive regulatory environment in the US. The exchange recently unveiled plans to add 1,000 new workers in the US, indicating its commitment to growth and innovation in the cryptocurrency sector. This expansion is part of Coinbase’s broader strategy to leverage its strengths in the US market to drive international growth.

India’s stance on cryptocurrencies has historically been hostile, with significant taxes imposed on crypto transactions to discourage investment. However, the country’s policy of discouraging crypto businesses has led many entrepreneurs to relocate to countries like the UAE or Singapore. Despite this, India ranks first in the world in terms of crypto adoption, indicating a strong underlying interest in digital assets.

Seeing the positive outlook toward digital assets, India is reportedly reconsidering its draconian stance on cryptocurrencies. This shift in policy could create new opportunities for crypto exchanges like Coinbase to operate in the Indian market, further driving the adoption of digital assets in the region. Coinbase’s re-entry into India is a strategic move that aligns with its global expansion goals and the evolving regulatory landscape in both the US and India.