Coinbase’s Re-Entry into India’s Cryptocurrency Market: FIU Green Light Sparks the Global Crypto Adoption!

Coinbase Global, a leading cryptocurrency exchange worldwide, obtained official re-registration with India’s Financial Intelligence Unit (FIU) to take a major step toward re-entering the Indian digital asset market. The re-registration by Coinbase Global is anticipated to create major changes within India’s cryptocurrency trading environment. India’s FIU approval of Coinbase marks a pivotal development in the nation’s cryptocurrency environment. The company now legally offers crypto trading services due to Indian investors’ rising interest in digital assets.

India represents one of the world’s most dynamic markets for crypto and onchain innovation.

We have registered with India’s Financial Intelligence Unit (FIU), enabling us to offer crypto trading services in the country.

— Coinbase 🛡️ (@coinbase) March 11, 2025

India Leads the World in Cryptocurrency Adoption 

Coinbase identifies India as a primary market because it leads the world in cryptocurrency adoption rates. A late 2024 Chainalysis study found that India leads the world in cryptocurrency adoption, with millions of individual investors participating in the market. 

Our 2024 Global Crypto Adoption Index is here! The top 10 countries spanned 5 continents, but Central & Southern Asia and Oceania (CSAO) dominated the list. Read on to see the top 20 countries and learn about global adoption trends: https://t.co/F2nqkELtd2 pic.twitter.com/bbuG1lQ8vB

— Chainalysis (@chainalysis) September 11, 2024

Coinbase’s APAC Regional Managing Director John O’Loghlen also believes India is “one of the most exciting market opportunities in the world.” He stated, “We’re proud to deepen our investment here in full compliance with local regulations.”

Coinbase’s Re-Entry into India’s Cryptocurrency Market

Coinbase’s re-entry into India’s cryptocurrency market strengthens its Asian market position while advancing crypto legalization efforts in a promising market. The company’s return supports its strategic goal of entering economies with significant fintech growth. The approval demonstrates how India’s position on digital assets is adapting between strict regulatory measures and rising investor interest. 

This milestone reinforces our commitment to compliance and is another significant step in our international expansion strategy.

Learn more here: https://t.co/DSaPvUR23B pic.twitter.com/61PBEYJ8Wo

— Coinbase 🛡️ (@coinbase) March 11, 2025

Following their regulatory approval, Coinbase plans to introduce retail trading services in India later this year and will subsequently roll out investment products that promise to transform the country’s crypto landscape.

RBI Restriction and Tax Regulations in India

The regulatory framework in India has been a serious concern for international crypto exchanges. The Reserve Bank of India (RBI) previously restricted foreign crypto exchanges and even banned major market players such as Binance and KuCoin. Coinbase attempt to enter the Indian market also was interrupted by RBI two years ago. 

Moreover, India demands one of the highest crypto transaction tax rates through both a 30% tax on trading profits and a 1% Tax Deducted at Source (TDS) on each trade. Consequently, the tax regulations in India have pushed certain investors to use peer-to-peer (P2P) platforms and decentralized exchanges.

The Road Ahead: Coinbase’s Strategic Vision

Through compliance with Indian regulations, Coinbase demonstrates its belief in the market’s future potential even as it navigates taxation challenges and policy discussions. Coinbase’s registration indicates a regulatory change that might lead other international exchanges to pursue similar registrations. The current development may establish a more inclusive regulatory framework to advance innovation and attract investment.

Coinbase’s re-entry into India’s cryptocurrency market will likely heighten the competitive landscape. Domestic exchanges like CoinDCX, WazirX, and ZebPay, as well as international exchanges Binance and KuCoin, must adjust to the rapidly evolving market conditions. 

The presence of a globally recognized and regulated company like Coinbase in the market can push better security standards as well as promote transparency and industry innovation. This development could prompt authorities to reassess their crypto and tax regulations in India to find a balance between protecting investors and encouraging market growth.

What’s Next? A New Chapter for Crypto Adoption in India

Coinbase’s re-entry into India’s market indicates a transformation in the country’s regulatory stance toward cryptocurrencies. Securing approval allows the exchange to establish its leadership position in both compliance standards and industry best practices. Even though taxation issues persist, the digital asset market continues to hold significant potential in India.

Coinbase must successfully handle regulatory challenges while earning consumer trust to succeed in its upcoming launch. Successful execution of this strategy might establish an example for international crypto exchanges entering the Indian market while promoting a more transparent crypto economy.