The crypto exchange is in discussions with Indian regulators, such as the Financial Intelligence Unit (FIU), to secure the necessary approvals for a relaunch.
Coinbase aims to relaunch the same centralised exchange platform that was initially introduced in India in 2023, with local partners backing it up on board and strategy. The company will join players of the crypto market such as CoinDCX and CoinSwitch.
Executives from Coinbase are expected to visit India in March 2025 to meet with the FIU as part of the company’s efforts to meet regulatory requirements. Once the approvals are obtained, Coinbase is projected to proceed with its relaunch. This could potentially happen in the latter part of 2025.
Coinbase launched in India in 2022 supported by India’s United Payments Interface system. However, the company removed the feature to purchase Bitcoin using the system in India after three days when the National Payments Corporation of India raised regulatory concerns. By 2023, the company announced that it would discontinue all operations in the country.
India is revisiting its crypto stance, influenced by changes in other countries’ approaches to digital assets, but a tax of 30% on trading, selling or spending cryptocurrency persists. However, despite the complex regulatory environment and lack of a clear framework continues to be a key player in crypto adoption.
In June 2024, the FIU targeted nine off-shore exchanges, including Binance, over allegations of operating in violation of local AML regulations. The company complied with the regulatory requirements and paid the USD 2.25 million fine, then resumed operations in India after a seven-month hiatus.
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