India’s Crypto Opposition Eases as Coinbase Receives Regulatory Nod

• Coinbase shut down operations in India in 2023 due to regulatory challenges.
• Binance and other exchanges have registered with India’s Financial Intelligence Unit (FIU), with decisions pending.
• Coinbase CLO Paul Grewal has joined the U.S.-India Business Council, strengthening ties between the two nations.

Coinbase has secured regulatory approval to relaunch in India, marking its return to the market after shutting down in 2023 due to regulatory challenges.

India’s decision to grant Coinbase the green light could signal a more favorable outlook for the nation’s Web3 sector.

Coinbase Returns to India

As per a March 11, 2025 press release from Coinbase, the exchange has confirmed its registration with India’s Financial Intelligence Unit (FIU).

Coinbase will begin offering retail crypto services this year and intends to follow up with other investment products.

The exchange notes that India is quickly becoming a blockchain and crypto development hub, citing its increasing share of global developers and having the “highest concentration of talent in the on-chain space” among emerging markets.

Regulatory Challenges and Previous Exit

Coinbase first attempted to launch in India in 2022, integrating with Unified Payments Interface (UPI) to facilitate crypto-to-rupee trading.

However, just three days later, the National Payments Corporation of India (NPCI) blocked the service, forcing Coinbase to pause operations.

By 2023, the exchange had fully disabled new sign-ups in the country.

Other major exchanges, including Binance, have also registered with India’s FIU, signaling a potential shift in regulatory openness.

India’s Crypto Landscape and Coinbase’s Return

While India remains a key player in Web3 development, the country’s strict tax policies continue to pose challenges. These include:

• 30% tax on digital assets.
• 1% Tax Deducted at Source (TDS) on transactions.
• Potential income tax on non-trading crypto earnings.

Coinbase’s return also follows a major security incident in 2024, when India’s largest crypto exchange, WazirX, was hacked, resulting in major losses. 

Additionally, Coinbase’s Chief Legal Officer, Paul Grewal, was recently appointed to the U.S.-India Business Council (USIBC), strengthening ties between India and the U.S. crypto industry.

As Coinbase notes:

“The USIBC plays a pivotal role in advancing the U.S.-India commercial relationship.”

With the U.S. pushing a pro-crypto agenda and India increasingly embracing Fintech innovation, Coinbase’s return could signal a bullish shift for India’s Web3 sector.