Coinbase is working on its entry to India more than a year after it officially ceased operations in the most populous nation in the world.
The US Crypto exchange collaborates with various Indian authorities, including the Financial Intelligence Unit (FIU), an Indian government agency that explores financial transactions, according to two familiar sources with the issue that has called for anonymity, as delusions continue and privately.
Coinbase’s work on its return follows a tumultuous history in the South Asian market. Binance, Cryptocurrency’s largest exchange of the world, resumed operations in India last August After registering with the FIU after a seven-month regulatory stop. The move has established a precedent for foreign cryptocurrency exchanges seeking to work in India.
Coinbase’s previous attempt to launch services in India ended abruptly in 2022. The exchange launched with a lot of fanfare in April From that year, introducing support for the widely used United Payments Interface (UPI) system. The company had to suspend the service Just three days later After the National Payment Corporation of India that controls UPI, refused to acknowledge Coinbase’s operations.
Brian Armstrong, Coinbase’s general manager, later revealed that the costume faced “informal pressure” from the Reserve Bank of India, which led to the trade stop. Although trading on cryptocurrency is not illegal in India, lenders largely refuse to do business with virtual active companies in the country to avoid disturbing the Central Bank, according to many entrepreneurs, investors and other officials.
The timing of Coinbase’s possible relaunch depends on how much time it takes to ensure necessary approvals, including a license to operate from the FIU. The agency previously ruled that many exchanges, including Kraken and Binance, Whether “illegally” worked in India. (Many of these firms have since been completed by the FIU, which requires broader information about using activities.)
“Coinbase is excited by the opportunities in the Indian market and intends to meet applicable regulatory requirements,” a company spokesman told Techcrunch, declining to share any update on FIU’s registration.
Crypto Exchange’s interest in India comes when it explores a broader international expansion, with comments made by Coinbase CFO Alesia Haas at a recent Goldman Sachs conference.
Even because India is a key foreign market for US technology giants, the Crypto market remains small – in part because the local government has implemented a 30% tax on crypto income and 1% deduction on each transaction in 2022.
Return to India could help fill the void abandoned by the implosion of the Indian exchange Wazirx After the company lost about half of its reserves in Heist. Now, Coinswitch and Coindcx are the highest Indian cryptocurrency exchanges, and both are supported by Coinbase.
