Coinbase, a leading crypto exchange, is gearing up to re-enter the Indian crypto market after securing registration with the Financial Intelligence Unit (FIU) in India. The company recently announced its plans to relaunch its services in India, citing optimism about the dynamic nature of the Indian crypto market.
Known for its highly regulated crypto trading services catering to both retail and institutional investors, Coinbase’s return to India comes as a welcome development for crypto enthusiasts in the country. The exchange’s registration with the Indian FIU unit signifies its commitment to operating in compliance with anti-money laundering (AML) measures to prevent the misuse of cryptocurrencies.
In recent months, several crypto companies have registered with the Indian FIU unit and resumed their services, signaling a positive trend in the regulatory landscape for cryptocurrencies in India. With nearly 28 crypto companies now registered with the FIU, including major global exchanges like Binance, Coinbase’s decision to re-enter the market reflects the growing interest and potential of the Indian crypto ecosystem.
However, Coinbase’s journey in the Indian market has not been without challenges. In 2023, the exchange suspended its services in India due to regulatory uncertainties and the need to ensure compliance with evolving standards. The changing regulatory landscape around cryptocurrencies posed challenges for crypto companies operating in India, leading to disruptions in their services.
One of the major obstacles faced by Coinbase was the restriction on the use of UPI payment services for crypto-related activities in 2022. Despite seeking legal approval for using UPI payments, Coinbase executives faced opposition, ultimately resulting in the removal of UPI payment services from most exchanges in compliance with regulatory directives.
Furthermore, in 2023, Coinbase faced a legal battle with the US Securities and Exchange Commission (SEC) over allegations of offering unregistered security tokens on its platform. The SEC accused Coinbase of violating securities laws by providing unregistered securities offerings, leading to a lawsuit against the exchange.
However, with a change in leadership at the SEC and a shift in the regulatory environment under the ProCrypto administration, the case against Coinbase was eventually dropped. The decision marked a turning point for Coinbase and highlighted the evolving regulatory landscape for cryptocurrencies in the US.
As Coinbase prepares to re-enter the Indian market and resume its crypto trading services, the company’s leadership remains optimistic about the opportunities and growth potential in the Indian crypto market. With a renewed focus on compliance and regulatory measures, Coinbase aims to provide a secure and reliable platform for crypto traders in India, contributing to the development of the country’s crypto ecosystem.