Coinbase Plans Return to India, Driving Growth and Renewed Regulation Demand

Key Takeaways

• Coinbase is in talks with Indian regulators about coming back after two years.
• Coinbase entered India in 2022, only to exit the market three days later.
• Several foreign crypto exchanges have lined up in India, reigniting hopes of clearer regulations.

Global crypto exchange Coinbase reportedly plans to re-enter India nearly two years after leaving due to regulatory uncertainty.

However, in 2025, the regulatory environment in the country hasn’t changed much apart from a hefty 30% tax.

Several foreign crypto exchanges, including Binance, KuCoin, and Bybit, have registered with the Financial Intelligence Unit (FIU) to get clearance to cater to Indian customers.

Coinbase In Talks With FIU

According to a Techcrunch report citing two sources familiar with the matter, Coinbase is currently in talks with the FIU about re-entering India.

A spokesperson from the exchange said:

“Coinbase is excited by the opportunities in the Indian market and intends to comply with applicable regulatory requirements.”

Coinbase’s first tenure in India was very short-lived. The exchange announced its launch in April 2022 with support for the Unified Payment Interface (UPI), the popular mobile payment network.

However, three days later, the National Payment Corporation (NPC), which oversees UPI, declined to acknowledge its Coinbase ties, forcing the exchange to shut operations .

FIU is the chief financial regulator under the Finance Ministry, overseeing crypto exchange registrations in India. Earlier, several foreign crypto exchanges offered their services to Indian customers due to a lack of regulatory oversight.

However, a slew of financial crimes whose proceeds were laundered using foreign crypto platforms led to an industry-wide crackdown by the FIU in December 2023.

The agency banned all foreign crypto exchanges operating without registration and imposed hefty fines for tax evasion.

Several crypto exchanges paid the penalty and registered with the FIU to obtain a license to operate legally in the country, and Coinbase aims to do the same.

Will Foreign Crypto Exchanges Return to India Revive Regulation Talks?

The race among foreign crypto exchanges to re-enter India has given hope to the tormented Indian crypto community.

Many believe that the entry of these global exchanges and the changing crypto narrative globally, especially in America, could finally convince the Indian government to develop more precise regulations. 

India, despite being the top-ranking country in terms of crypto adoption, has no crypto regulatory rulebook apart from a hefty 30% tax on profits and a nearly 70% penalty for failing to file taxes.

The Indian government has yet to table a crypto regulation bill despite promising the same for nearly six years. Indian crypto traders suffer the most, as they first need to pay 30% of their profit, and despite that, the government offers no protection against fraud or scams.

In the recent WazirX hack and subsequent manipulation by the crypto exchange, the government refused to acknowledge or take action against the exchange despite numerous calls and advised customers not to invest in such speculative assets.