Coinbase, a well-known cryptocurrency exchange, is set to make a comeback in the Indian market after it discontinued its services in September 2023 due to stringent regulatory pressure. The crypto exchange posted a blog on its official website and announced the development.
Coinbase India Launch in April 2022
The crypto exchange initially launched in India, April 2022, allowing users to buy cryptocurrencies via the Unified Payments Interface (UPI). However, days after its launch, the exchange had to suspend UPI transactions following intervention from the National Payments Corporation of India (NPCI) and informal pressure from the Reserve Bank of India (RBI) regarding its compliance issues.
Services Suspended in September 2023
The formal discontinuation of the services was announced in September 2023, where the exchange advised its users to withdraw their funds by September 25. This decision came amid a broader crackdown on cryptocurrency operations in India, including a hefty 30% tax on crypto income implemented by the government.
Following this, the exchange halted new user sign-ups and faced scrutiny over account compliance with updated standards.
Re-entry into the Indian Market
Coming back to today, Coinbase is actively working on re-entering the Indian market. The exchange has registered with the Financial Intelligence Unit (FIU), which is a crucial step toward resuming operations in the later part of 2025.
This move reflects growing interest in India’s crypto scene as regulatory frameworks evolve and international exchanges seek to navigate compliance hurdles.
Also, there have been talks about creating a clearer regulatory framework for cryptocurrencies amongst the Indian authorities which again increases the chances of the exchange’s return.
As Coinbase prepares for its relaunch, it might be able to fill the avoid left by local exchange WazirX, which is currently under scrutiny of FIU. With these ongoing efforts to engage with regulators and adapt to India’s unique market conditions, the exchange’s comeback is ensured.
The timing of these developments is significant, as the exchange announced expansion of its services in the US and prepares for its Indian relaunch, it reflects the company’s commitment towards global growth and adaption to local market conditions.
With these developments, Coinbase is actually solidifying its position as a key player in cryptocurrency space.
Also Read: Mt. Gox Moves $931M in BTC, Market Braces for Potential Volatility
