Coinbase Registers with India’s FIU, Paving Way for Crypto Trading

Coinbase, the U.S.-based cryptocurrency exchange, is making a strategic comeback to the Indian market by registering with India’s Financial Intelligence Unit (FIU). This move is a significant step forward in the company's efforts to offer cryptocurrency trading services in India, a market known for its regulatory challenges but also its vast potential.

On March 11, 2025, Coinbase announced its successful registration with the FIU, a crucial regulatory hurdle that grants the company the legal right to operate as a virtual digital asset (VDA) service provider in India. This registration brings Coinbase under the purview of the country’s Prevention of Money Laundering Act (PMLA), which mandates stringent compliance measures. These include Know Your Customer (KYC) procedures, transaction monitoring, mandatory reporting of suspicious activities, and regular audits by Indian authorities. This compliance framework ensures that Coinbase’s operations are transparent and legitimate, aligning with India’s regulatory standards and reinforcing the company’s commitment to responsible and sustainable business practices in the Indian crypto ecosystem.

Coinbase’s first attempt to enter the Indian market in April 2022 was met with regulatory hurdles and an abrupt shutdown. The exchange had to cease operations within days of launching its UPI (Unified Payments Interface) service due to a lack of clarity and informal pressure from the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). This experience highlighted the need for proactive regulatory engagement and proper approvals before launching services. This time, Coinbase is taking a more strategic approach, focusing on building a sustainable local blockchain ecosystem rather than just providing a crypto trading platform. The company plans to launch initial retail services later this year, followed by additional investments and products in India, indicating a phased rollout that adapts to regulatory shifts.

At the core of Coinbase’s strategy is an enhanced focus on its developer platform and tools, particularly through its Base network. The company aims to equip Indian developers with tailored solutions and top-tier infrastructure, aligning with the Indian government’s “Digital India” campaign. This campaign aims to make India a digitally empowered society and knowledge economy. By empowering local developers, Coinbase hopes to create the conditions for Indian talent to flourish at home, building best-in-class products out of India. John O’Loghlen, Coinbase’s Regional Managing Director for APAC, emphasized the company’s commitment to local regulations and long-term presence in India, stating that the country represents one of the most exciting market opportunities in the world today. This strategic shift reflects Coinbase’s determination to succeed in the Indian market by fostering a vibrant and compliant crypto ecosystem.