The post Coinbase Plans Return to India After a Year-Long Pause appeared first on Coinpedia Fintech News
Coinbase, a major U.S. crypto exchange, is working towards re-entering the Indian market after halting operations over a year ago. The company is engaging with Indian regulators to ensure compliance as the government reconsiders its stance on crypto policies.
Coinbase in Talks with Indian Authorities
According to sources, Coinbase is in talks with Indian authorities, including the Financial Intelligence Unit (FIU), which monitors financial transactions. The company is focused on meeting regulatory requirements and is optimistic about its return.
A Coinbase spokesperson stated, “We are excited about the opportunities in India and are committed to complying with local regulations.”
Coinbase’s renewed interest in India comes as part of its larger global expansion plans. Recently, its Chief Legal Officer, Paul Grewal, joined the board of the U.S.-India Business Council (USIBC), strengthening ties between the two countries in the financial sector.
India’s Changing Crypto Policies
This decision came after the company stopped allowing new users in India in June 2023. India has strict rules for digital assets, even though their use is growing.
Coinbase had initially entered India in April 2022, launching support for the Unified Payments Interface (UPI). However, the service was suspended just three days later after India’s National Payments Corporation refused to acknowledge Coinbase’s operations.
Despite India’s strict regulations, crypto adoption continues to grow. The government imposed a 30% tax on crypto income and a 1% tax on each transaction in 2022, discouraging many investors.
However, with policy adjustments happening worldwide, India may take a softer approach to crypto regulations in the future.
Binance Takes the Lead In India
Coinbase’s stronger rival, Binance the world’s largest crypto exchange successfully resumed operations in India in August 2023 after addressing compliance issues. This showed that big global exchanges could still operate in India if they met all the requirements.
With Binance already back and Coinbase planning its return, India’s crypto market may see new growth. If Coinbase succeeds, Indian traders will have more choices, which could boost crypto adoption in the country.