Cryptocurrency exchange Coinbase is one step closer to relaunching its services in India after securing a license with the country’s Financial Intelligence Unit (FIU).
On March 11, the crypto exchange revealed on social media that “we’re approved to launch in India,” which prompted a follow-up from Coinbase’s chief legal officer, Paul Grewal.
“Coinbase is now FIU-registered,” said Grewal. “It’s a major step towards empowering Indian entrepreneurs to build, innovate and scale global onchain businesses — all from home.”
A Coinbase blog post confirmed that the exchange plans to offer cryptocurrency trading services in the country but did not specify a timeline for service rollout.
In addition to crypto traders, India’s developer community could benefit from the availability of Coinbase and its related tools, including its Base network, according to the company’s APAC regional managing director, John O’Loghlen.
Cointelegraph contacted Coinbase for more information about its India launch plans but did not receive an immediate response.
Coinbase’s first foray into India in 2022 lasted mere days after it ran into issues with the country’s central bank. Coinbase said at the time that it was “committed to working with […] relevant authorities to ensure that we are aligned with local expectations and industry norms.”
India pivots on crypto
India has had a complicated history with cryptocurrency, with the FIU banning several crypto exchanges over the years.
Legal expert Amit Kumar Gupta told Cointelegraph that many lawmakers view the industry negatively, associating it with gambling and illegal activities. This partly explains why some elements of the Indian government want to purge the sector by implementing harsh tax laws.
Nevertheless, the tides appear to be shifting as global crypto adoption heats up, which has prompted fears that India will be left behind.
In February, Reuters cited India’s economic affairs secretary Ajay Seth as saying that cryptocurrencies “don’t believe in borders,” suggesting that the country needs to get ahead of the adoption curve.
Despite the controversy, India has emerged as the leading country in terms of crypto adoption within the Central, Southern Asia and Oceana (CSAO) region, according to a 2024 report by Chainalysis. India received especially high marks for retail and decentralized finance adoption, the report said.