Coinbase, U.S.-based cryptocurrency exchange, has officially registered with India’s Financial Intelligence Unit (FIU). This marks its return to the Indian market nearly two years after leaving due to regulatory challenges.
Coinbase’s registration with FIU allows it to legally offer crypto trading services in India. The exchange initially entered the Indian market in April 2022 but faced immediate regulatory hurdles. The company attempted to use India’s widely popular digital payment system, the Unified Payments Interface (UPI). However, Coinbase suspended its UPI services only three days after the April 7 launch. The National Payments Corporation of India (NPCI), which oversees UPI, clarified at the time that it did not recognize crypto exchanges as authorized entities under India’s payment infrastructure.
Due to these regulatory pressures and operational difficulties, Coinbase ultimately halted all its retail services in India in September 2023. The company instructed Indian users to withdraw their funds ahead of the shutdown, effectively ending its first attempt to operate in the country.
Despite suspending direct retail operations, Coinbase maintained an indirect presence in India’s crypto market through investments from its venture arm, Coinbase Ventures. It funded two prominent local crypto exchanges, CoinSwitch Kuber and CoinDCX, showing continued interest in India’s crypto ecosystem.
Additionally, India’s Reserve Bank (RBI) had applied informal pressure, discouraging banks and payment providers from handling cryptocurrency transactions. Combined with India’s introduction of a strict tax regime—a 30% tax on crypto profits and a 1% tax deduction at source (TDS)—Coinbase found it difficult to sustain operations and halted services in 2023.
Indian Regulatory Environment Is Now More Favorable
Coinbase’s decision to re-enter India in 2025 comes amid a shifting rules and regulations. While taxes on crypto transactions remain high, the Indian government’s attitude toward cryptocurrencies appears more accommodating. Influenced partly by international trends, notably U.S. President Donald Trump’s support to digital assets, India has started accepting registrations from global exchanges like Binance and KuCoin as well.
The FIU registration is critical for Coinbase, ensuring compliance with India’s anti-money laundering (AML) rules. This move signals India’s willingness to integrate cryptocurrencies into its financial framework, albeit under stringent oversight.
India presents a good opportunity for Coinbase. The country has rapidly expanded its presence in blockchain and crypto innovation. From holding just 3% of global blockchain developers in 2018, India’s share rose to 12% by 2023. Additionally, demand for reputable crypto platforms has also grown following security breaches at domestic exchanges, including the massive $235 million hack of WazirX in 2024. Coinbase sees a clear opportunity to offer Indian users a secure and trusted alternative.
Coinbase Plans Retail Launch Later This Year
Coinbase announced it will launch retail trading services in India by the end of 2025, with plans to expand further in the coming years. John O’Loghlen, Coinbase’s APAC Managing Director, emphasized the company’s commitment to complying fully with local regulations.
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