The U.S.-based cryptocurrency exchange Coinbase has officially registered with India’s financial regulator, paving the way for the company to offer crypto trading services in one of the world’s largest markets.

Coinbase Secures Approval to Enter India’s Crypto Market

Coinbase is preparing to re-enter the Indian market after successfully securing regulatory approval from the country’s Financial Intelligence Unit (FIU). This milestone enables the exchange to provide crypto trading services in India. According to a statement released on March 11, Coinbase plans to launch initial retail services later this year, with an aim to introduce additional investments and products in the Indian market in the future.

“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.” — John O’Loghlen, Regional Managing Director for APAC at Coinbase

Previous Challenges in India

Coinbase’s earlier attempt to establish operations in India faced significant setbacks. In April 2022, the company introduced support for India’s popular UPI payment system but was forced to suspend operations just three days later. Reports indicated that the National Payments Corporation of India (NPCI) declined to approve the exchange’s services, while the Reserve Bank of India allegedly applied informal pressure to halt its activities.

Despite these challenges, Coinbase remains optimistic about its future in India, describing it as a market that is “embracing regulation and encouraging innovation in the crypto and onchain space.”

India’s Thriving Crypto Ecosystem

India has emerged as a hub for innovation and entrepreneurship, with one of the most vibrant startup ecosystems globally. The country’s share of global developers has grown significantly, increasing from 3% in 2018 to 12% in 2023. Coinbase views this growth as a key factor in its decision to re-enter the Indian market.

“India’s developer community and entrepreneurial energy are unmatched. But too often, young Indian entrepreneurs have felt forced to look abroad to build global companies. Crypto can change that.” — John O’Loghlen

Strategic Timing Amid Market Activity

Coinbase’s announcement coincides with notable market developments. On March 10, Cathie Wood’s ARK Invest acquired over 64,000 Coinbase shares, valued at approximately $10.5 million at the time of purchase. This investment came as Coinbase’s COIN shares experienced a 17.58% decline amid broader market turbulence.

As Coinbase prepares to re-establish itself in India, its focus on compliance, innovation, and the support of local regulations highlights the company’s commitment to long-term growth in the region. With India’s burgeoning interest in cryptocurrencies and blockchain technology, Coinbase’s expansion could play a significant role in shaping the future of crypto adoption in the country.

Post Views: 1