Coinbase, a top US crypto exchange, aims to restart operations in India after a year. The company is discussing with Indian authorities, including FIU, as reported by TechCrunch. This decision follows Binance’s return in August post registration with the FIU after a regulatory halt.
Coinbase’s initial foray into the Indian market in April 2022 was brief as it had to halt UPI-supported services after three days due to lack of recognition by India’s National Payments Corporation. The potential return of Coinbase in India hinges on securing required approvals, including an FIU license.
Coinbase’s CEO, Brian Armstrong, highlighted the significant impact of “informal pressure” from the RBI on the trading suspension. In India, despite cryptocurrency trading not being illegal, financial institutions often avoid partnerships with virtual asset firms due to concerns about displeasing the central bank, as highlighted by industry experts.
Coinbase is looking to re-enter India as part of its global expansion plan, according to CFO Alesia Haas speaking at a recent Goldman Sachs conference. Despite being an important market for US tech companies, India has a small cryptocurrency sector, partly due to the 30% tax on crypto income and 1% transaction fee introduced by the Modi government in 2022.
Coinbase can help fill the void from WazirX’s hack. CoinSwitch and CoinDCX, India’s top exchanges backed by Coinbase, could facilitate its re-entry. With Coinbase’s legal officer now on the US-India Business Council board, entering India might become more seamless.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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