Key Takeaways
- Coinbase resumed operations in India nearly three years after shutting down.
- Coinbase registered with the FIU in March of this year.
- The Coinbase operations restart came just days after the FIU issued another list of non-compliant exchanges.
Global cryptocurrency exchange Coinbase has resumed operations in India, months after registering and getting approval from the Financial Intelligence Unit (FIU).
Coinbase’s service restart comes just days after the FIU issued a new list of blacklisted foreign crypto exchanges, almost two years after releasing its first list of blacklisted crypto exchanges.
Coinbase Starts Early Access
Coinbase has resumed operations in India, nearly three years after suspending its services, citing regulatory challenges.
In March earlier this year, the crypto exchange registered with India’s FIU in accordance with anti-money laundering regulations. Coinbase’s first retail services were launched, and consumers reported having access to trading and early alerts.
- Coinbase resumes services in India. Source: X
The FIU had imposed a ban on noncompliant foreign crypto exchanges by the end of 2023, following which Binance, Coinbase, Bybit, and several others registered with the FIU and paid the penalty for offering services without registration.
The first blacklist comprised nearly 12 foreign crypto exchanges with major global players that were offering services to Indians without registering with the due authority. However, the fault was not only on the exchanges’ part, as the lack of regulatory clarity made it difficult for exchanges to identify a central regulatory body before the FIU stepped in.
FIU Releases Another List of 25 Blacklisted Exchanges
On Oct.1, the FIU issued show-cause notices to 25 offshore cryptocurrency exchanges for non-compliance with anti-money laundering (AML) regulations under the Prevention of Money Laundering Act (PMLA) 2002.
The show-cause notice requires these exchanges to register with FIU, implement KYC procedures, maintain transaction records, and report suspicious activities; failure to comply could result in the IT Ministry taking down apps and websites.
The targeted platforms include well-known and lesser-known entities serving Indian users without proper registration. Some popular global names include Paxful, PrimeXBT, BitMex, CoinEx, HitBTC, CEX.IO, and Poloniex.
Mark Taylor, head of financial crime at CEX.IO, in a statement emailed to TechCrunch.
“We are actively exploring pathways to ensure alignment with India’s regulatory requirements and any required registration with Indian authorities to ensure long-term accessibility for our users in the region.”
FIU has blacklisted the aforementioned platforms for non-compliant operations and ordered them to remove their apps and URLs from public access in India.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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