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On March 11, the U.S.-based exchange Coinbase announced that it is set to re-enter the Indian market. The exchange has secured approval from the Financial Intelligence Unit, the country’s financial regulatory body.
Coinbase said it plans to provide crypto trading services to retail traders in India and will focus on “additional investment and products in India thereafter.”
The exchange underlined, “This milestone reinforces our commitment to compliance and is another significant step in our international expansion strategy.”
The regulatory nod in India is a big win for Coinbase, as it was restricted from operating in the country in April 2022 as the central bank went after it.
The exchange offered Unified Payments Services (UPI), a popular instant payment system in India, for ease of customers. However, the National Payments Corporation of India — the authority overseeing UPI — refused to allow its services to be leveraged by Coinbase. The exchange soon disallowed UPI services on its platform. It was forced to cease its operations in the country within three days.
Crypto trading is a bone of contention in India. While the asset isn’t banned, it isn’t recognized either. The Reserve Bank of India, the country’s central bank, has been extremely critical of crypto assets due to its volatility. However, it has softened its stance of late as the new governor Sanjay Malhotra said that a discussion paper on cryptocurrency is underway.
Meanwhile, crypto remains a heavily taxed asset in the country, with a flat 30% tax on gains. Nonetheless, India led crypto adoption last year as per Chainalysis’ 2024 Global Adoption Index.