Global cryptocurrency exchange Coinbase is set to re-enter the Indian market after securing a registration with the country’s Financial Intelligence Unit (FIU) and complying with local regulations.
According to a March 11 announcement, Coinbase has been approved to offer cryptocurrency trading services to Indian traders.
The approval positions the United States-based platform to offer a suite of services for both retail and institutional markets.
Plans to launch “initial retail services” are set for later this year. However, the announcement did not provide any details on what specific products or features will be available at launch.
Coinbase also hinted at “additional investment and products” coming to India down the line, but didn’t share specifics.
Reflecting on the development, John O’Loghlen, Coinbase’s Regional Managing Director for the APAC region, said that India is one of the most “exciting” markets right now, and the company is committed to expanding its presence while staying fully compliant with local regulations.
Coinbase makes a comeback
Coinbase initially attempted to enter the Indian market in April 2022 but faced regulatory hiccups within days of introducing its services.
At the time, it rolled out support for India’s popular UPI payment system, but the National Payments Corporation of India (NPCI) refused to approve Coinbase’s services, and operations had to be suspended just three days later.
Now, with FIU registration in place, the company is making a fresh start in India.
Coinbase sees India as a “natural fit” for its expansion, pointing to the country’s booming startup ecosystem and its rapidly growing share of global developers.
India’s share of global developers increased from 3% to 12% between 2018 and 2023, according to Coinbase.
O’Loghlen noted that India’s developer community and entrepreneurial energy are “unmatched,” but many young founders have had to look abroad to build global businesses.
Crypto, he believes, could change that, providing local talent with new opportunities to innovate within the country.
India re-entry comes with hefty penalties
Although Coinbase did not disclose having to settle any penalties, past entrants have been penalised for noncompliance.
Bybit, for example, had to cough up INR 9.27 crore (~$1.06 million) to the Indian Ministry of Finance before getting the green light.
Binance also settled an INR 18.82 crore (~$2.25 million) fine, while KuCoin paid ₹34.5 lakh (~$41,000).
These penalties were tied to past operations without proper FIU registration, a requirement that became mandatory after crypto exchanges were included under India’s Prevention of Money Laundering Act (PMLA) in March 2023.
Exchanges in India must also follow strict reporting and record-keeping obligations under the law, and non-compliant entities are subject to enforcement actions.
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