On February 17, 2025, Coinbase is seeking regulatory approval to re-enter India after halting operations over a year ago, engaging with Indian authorities for the necessary permissions.
On February 17, 2025, Coinbase, the U.S.-based cryptocurrency exchange, announced that it is seeking regulatory approval to re-enter the Indian market after halting operations over a year ago. The company is engaging with Indian authorities, including the Financial Intelligence Unit (FIU), in hopes of securing the necessary clearances to resume its services.
Coinbase initially launched in India in April 2022, introducing support for the Unified Payments Interface (UPI), a popular digital payment system in the country. However, just days after the launch, the platform suspended its services when the National Payments Corporation of India (NPCI) refused to recognize its operations. Later, Coinbase’s CEO Brian Armstrong attributed the halt to informal pressure from the Reserve Bank of India (RBI), which has long been cautious about the crypto industry.
Although crypto trading itself is not illegal in India, banks have largely avoided working with digital asset companies to align with the RBI’s stance on digital currencies. This regulatory challenge has made it difficult for crypto exchanges like Coinbase to operate smoothly in the country.
Coinbase’s renewed push to re-enter India comes after Binance, another major crypto exchange, successfully resumed operations in the country last year after registering with the FIU. Many other platforms, such as Kraken, were also flagged for operating without proper authorization but have since complied with necessary disclosure requirements, a step Coinbase is expected to follow as part of its regulatory submission.
The timing of Coinbase’s return to India depends on securing all required approvals, including an FIU license. A company spokesperson confirmed Coinbase’s commitment to adhering to local laws but did not provide an update on its registration status.
Globally, Coinbase continues to expand. CFO Alesia Haas recently outlined the company’s international ambitions, while Chief Legal Officer Paul Grewal joined the U.S.-India Business Council to strengthen ties between the two nations. Grewal emphasized India’s rapidly growing Web 3.0 ecosystem, which is attracting a significant developer community and increasing institutional adoption of blockchain technology.
Despite its growth potential, India remains a challenging market for cryptocurrency companies due to strict taxation policies. In 2022, the Indian government imposed a 30% tax on crypto income and a 1% tax deduction per transaction, which has dampened local trading activity. As Coinbase seeks regulatory approval, it will have to navigate these hurdles to re-establish its foothold in the Indian market.
