Coinbase Seeks Approval to Relaunch Operations in India

Coinbase, a leading U.S.-based cryptocurrency exchange, is reportedly seeking approval from Indian regulators to restart its operations in the country. This move comes over a year after the company pulled out of India due to regulatory challenges.

Previous Attempt and Regulatory Challenges

Coinbase’s initial attempt to launch services in India ended in April 2022. The company introduced support for India’s popular UPI payment system but had to suspend operations just three days later. The National Payments Corporation of India refused to approve the crypto exchange’s services, and the Reserve Bank of India applied “informal pressure” to stop the exchange.

Despite these challenges, Coinbase is now working to relaunch its services with the necessary regulations. The company has been in talks with Indian regulators, including the Financial Intelligence Unit, to ensure compliance with local laws.

Current Market Landscape

Crypto trading is legal in India, but the government has imposed a 30% tax on cryptocurrency earnings and a 1% tax on transactions. This has slowed down market growth, creating a gap in the market that Coinbase’s return could potentially fill.

The collapse of WazirX, a local trading platform, has also created an opportunity for Coinbase to re-enter the market. Additionally, two other local trading platforms, CoinSwitch and CoinDCX, are both backed by Coinbase, which could help facilitate the exchange’s return.

Regulatory compliance is crucial for the growth of the cryptocurrency market in India. Coinbase’s return could help boost market confidence and drive growth.

Tips for Investors

If you’re interested in investing in cryptocurrency in India, here are some key things to keep in mind:

  • Understand the local regulations and taxes on cryptocurrency earnings and transactions.
  • Choose a reputable and compliant cryptocurrency exchange.
  • Stay informed about market trends and developments.

For more news on the cryptocurrency market and regulatory developments, visit Global Crypto News.

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