Nasdaq-listed crypto exchange, Coinbase (COIN), has obtained registration with the Financial Intelligence Unit (FIU). The company is trying to re-establish its full-scale trading services in India.
Coinbase has had a challenging relationship with the Indian market, facing repeated hurdles due to regulatory uncertainties. The exchange entered India a few years ago but encountered roadblocks from local financial regulations.
In 2022, Coinbase attempted to restart its operations in the country but was forced to halt trading services due to “informal pressure” from the Reserve Bank of India (RBI). By 2023, the company ceased new user registrations, although it continued offering wallet services to Indian customers.
The FIU, which oversees financial compliance and anti-money laundering regulations, is key in monitoring virtual asset service providers (VASPs) operating within the country.
By securing this approval, Coinbase can now legally facilitate crypto transactions and expand its footprint in one of the world’s fastest-growing crypto markets.
“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations,” said John O’Loghlen, regional managing director for APAC at Coinbase.
Last year, Binance, the world’s largest cryptocurrency exchange, resumed operations in India after a seven-month suspension. To comply with regulatory requirements, Binance registered as a reporting entity with the FIU.
In India, crypto profits attract a 30 percent tax along with a 1 percent TDS on all transactions. Coinbase’s entry comes at a time when India’s most prominent crypto-exchange platform, WazirX, is reeling under the pressure of a $230 million crypto hack. As of now, WazirX is still under investigation by government authorities and is looking to rebalance users’ portfolios.
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