Coinbase seeks to re-enter the Indian market and is in talks with regulators

According to ChainCatcher news and reported by TechCrunch, Coinbase is in talks with the Indian Financial Intelligence Unit (FIU) and plans to re-enter the Indian market after a pause of more than a year. Previously, Binance resumed operations in India in August 2024 after registering with the FIU, setting a precedent for overseas crypto exchanges to enter the Indian market compliantly.

Coinbase briefly launched its operations in India in 2022 but had to suspend services within three days due to the National Payments Corporation of India (NPCI) refusing to recognize its UPI payment support. Coinbase CEO Brian Armstrong revealed that the company faced "informal pressure" from the Indian central bank.

A Coinbase spokesperson stated that the company is optimistic about the Indian market and plans to comply with all regulatory requirements. However, the growth of this market still faces challenges due to the Indian government's implementation of a 30% income tax and a 1% transaction withholding tax on crypto asset trading.