Major Crypto Players Are Returning to India After a Calculated Bet That Regulators May Ease Restrictions

Major crypto players are returning to India in a calculated bet that regulators may ease restrictions on digital-asset trading, reports Bloomberg.

Major cryptocurrency players are returning to India in a calculated bet that regulators in the South Asian nation may ease restrictions on digital-asset trading, even as their rivals are winding down operations.

Coinbase Global Inc (NASDAQ:COIN), the U.S. exchange, has recently registered with India’s Financial Intelligence Unit (FIU) as part of a plan to roll out its retail trading platform and boost investments in the world’s most populous country.

The move, which follows local registrations by Binance, Bybit and KuCoin, underscores a renewed interest in the Indian market following a period of uncertainty and a shift in the global policy landscape.

Following its G20 presidency earlier this year, India had hoped to release a consultation paper on crypto regulation. But with no progress made since then, and shifts in the global scene, New Delhi is now revisiting the issue.

"In the last 12 months, more than one jurisdiction has changed their stance significantly," Ajay Seth, secretary of India’s Department of Economic Affairs, said at a recent roundtable.

Pointing to the risks posed by using digital assets such as stablecoins and the potential for crypto to facilitate multilateral capital flows, which could impact emerging economies like India, Seth added: "We were ready with a discussion paper, but we now need to recalibrate it due to these changes."

Despite local restrictions, India has emerged as a critical hub for blockchain development, with its global share of specialised developers increasing from 4.0 per cent in 2018 to 12 per cent in 2024, second only to the U.S., according to Electric Capital. Crypto exchanges including Coinbase and Gemini have engineering hubs in India.

"India is a huge market, and you can’t ignore it if you have a