Coinbase Returns to India After Two-Year Hiatus, Officially Registers with FIU

After leaving the Indian market in 2023 due to regulatory challenges, U.S.-based cryptocurrency exchange Coinbase has officially

Coinbase, the U.S.-based cryptocurrency exchange, has officially registered with India’s Financial Intelligence Unit (FIU), marking its return to the Indian market nearly two years after leaving due to regulatory challenges.

Coinbase’s registration with FIU allows it to legally offer crypto trading services in India. The exchange initially entered the Indian market in April 2022 but faced immediate difficulties with regulators. Coinbase attempted to use India’s widely popular digital payment system, the Unified Payments Interface (UPI), to facilitate seamless transactions for its Indian users. However, Coinbase’s foray into UPI was short-lived and ultimately unsuccessful.

After only three days of operating with UPI, Coinbase was forced to suspend its services following an intervention by the National Payments Corporation of India (NPCI). As reported by Benzinga earlier this year, NPCI clarified that it did not recognize crypto exchanges as authorized entities under India’s payment infrastructure.

Following this setback and other difficulties, Coinbase made the decision to cease all its retail services in India in September 2023. The company instructed Indian users to withdraw their funds ahead of the shutdown.

Despite suspending direct retail operations, Coinbase maintained an indirect presence in India’s crypto market through investments from its venture arm, Coinbase Ventures. It funded two prominent local crypto exchanges, CoinSwitch Kuber and CoinDCX, showcasing its persistent interest in the country’s crypto ecosystem.

Moreover, India’s Reserve Bank (RBI) had applied informal pressure, discouraging banks and payment providers from handling cryptocurrency transactions. This, combined with India’s introduction of a strict tax regime—a 30% tax on crypto profits and a 1% tax deduction at source (TDS)—Coinbase found it difficult to sustain operations and halted services in 2023.

Coinbase’s decision to re-enter India in 2025 comes amid a shift in rules and regulations. While taxes on crypto transactions remain high, the Indian government’s attitude toward cryptocurrencies appears more open.

Coinbase has registered with the FIU, ensuring compliance with India’s anti-money laundering (AML) rules. This move signals India’s integration of cryptocurrencies into its financial framework, albeit under strong oversight.

India presents a good opportunity for Coinbase. The country has rapidly expanded its presence in blockchain and crypto innovation. From holding just 3% of global blockchain developers in 2018, India’s share rose to 12% by 2023.

Additionally, demand for reputable crypto platforms has also grown following security breaches at domestic exchanges, including the massive $235 million hack of WazirX in 2024. Coinbase sees an opportunity to offer Indian users a secure and trusted alternative.

Coinbase announced it will launch retail trading services in India by the end of 2025, with plans to expand further in the coming years. John O’Loghlen, Coinbase’s APAC Managing Director, highlighted the company’s commitment to fully complying with local regulations.