"Coinbase Registers with Indian Financial Watchdog to Offer Crypto Trading Services"

Coinbase, one of the world’s largest cryptocurrency exchanges, has taken a significant step towards expanding its global footprint by registering with India’s Financial Intelligence Unit (FIU). This move paves the way for the company to offer crypto trading services in India, a market that has seen a surge in digital asset interest despite regulatory uncertainties. The registration, announced on March 11, 2025, signals Coinbase’s renewed push into India’s growing crypto landscape, where the company plans to launch retail trading services later this year, followed by additional investment products.

The decision to establish operations in India comes at a time when the country is witnessing a rising wave of crypto adoption, particularly among younger investors. Many retail traders in India have turned to cryptocurrencies as an alternative investment avenue, even as the country continues to debate its regulatory framework for virtual assets. “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,” said John O’Loghlen, Coinbase’s regional managing director for Asia Pacific.

Coinbase’s entry into the Indian market will intensify competition among existing crypto exchanges such as CoinDCX, Binance, and KuCoin. These exchanges have already established a presence in India and have been operating under the FIU's regulatory framework. Coinbase’s proactive approach to compliance gives it a strategic edge over competitors who may have faced regulatory hurdles in the past. For instance, Binance and KuCoin have had to pay hefty fines for non-compliance, which highlights the importance of adhering to regulatory requirements.

Under Indian law, virtual digital asset service providers such as crypto exchanges must register with the FIU as reporting entities and comply with anti-money laundering regulations. This ensures that platforms like Coinbase operate under stricter guidelines aimed at curbing financial crimes and improving transparency. However, India’s taxation policies on crypto remain among the strictest globally, with a 30% tax on trading gains and a 1% tax deducted at source (TDS) on transactions. Despite these hurdles, the country remains an attractive market for international exchanges due to its large pool of retail investors and growing fintech adoption.

Coinbase’s registration with the FIU is a major milestone in its global expansion strategy, reinforcing its focus on compliance, security, and fostering innovation in a regulated environment. The company sees India as a key market due to its booming technology sector and expanding blockchain developer base. India’s share of global developers increased from 3% in 2018 to 12% in 2023, giving the country the highest concentration of such specialists among emerging markets and singling it out as a strategic priority for the exchange operator.

Coinbase’s renewed push into India comes when digital assets are gaining popularity among Indian investors. The exchange pointed out that the Asian country has emerged as a global hub for on-chain development, with its share of blockchain developers surging from 3% in 2018 to 12% in 2023. It also holds the highest concentration of on-chain talent among emerging markets. Considering this, O’Loghlen highlighted the strength of India’s developer community but noted that many entrepreneurs have traditionally looked overseas to scale their projects. He believes crypto can change that by enabling innovators to build within India while reaching a global audience.

In summary, Coinbase’s registration with India’s FIU enhances its credibility, intensifies competition, allows for a broader range of services, and aligns with its international expansion strategy, providing significant strategic advantages over its competitors in the Indian cryptocurrency market. Despite the regulatory challenges and high tax rates, Coinbase remains committed to entering the Indian market, as it sees the potential for growth and innovation. The company’s proactive approach to compliance and its focus on fostering innovation in a regulated environment make it an attractive opportunity for the company.