Coinbase Resumes Operations in India After Two-Year Hiatus
Coinbase has officially restarted its operations in India, marking a significant return after nearly two years of absence. The US-based cryptocurrency exchange announced its registration with India’s Financial Intelligence Unit (FIU) on March 11, a crucial requirement for all crypto firms in the country. This move underscores India’s growing prominence as a global technology leader and its pivotal role in the expansion of Web3.
Legal Registration Paves the Way for Trading
With its recent registration with the FIU, Coinbase is now authorized to offer cryptocurrency trading services to India’s vast population. The exchange plans to broaden its services in the coming months, introducing new retail offerings and investment products tailored for Indian users. John O’Loghlen, Coinbase’s Regional Managing Director for the Asia-Pacific region, expressed enthusiasm about the opportunities in India, stating, “India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.”
Coinbase’s return is not just about trading; it also aims to support India’s burgeoning Web3 developer community. The percentage of developers in India engaged in Web3 has increased from 3% in 2018 to 12% in 2023, highlighting the country’s rapid growth in this sector. This growth presents a unique opportunity for Coinbase to tap into local talent and foster innovation.
Introducing Base Blockchain for Local Developers
In addition to trading services, Coinbase is set to launch its Base blockchain in India. This platform offers developers a cost-effective and secure layer-2 solution on Ethereum, enabling them to build and innovate without the need to relocate abroad. O’Loghlen emphasized the importance of this initiative, stating, “Too often, young Indian entrepreneurs have felt forced to look abroad to build global companies. Crypto can change that.” With tools like Base, Coinbase aims to empower a new generation of local innovators to thrive in their home country while scaling their businesses globally.
Overcoming Legal Challenges and Future Plans
Coinbase’s journey back to India has not been without challenges. Between April 2022 and September 2023, the exchange faced legal obstacles that led to a temporary halt in its services. After announcing plans for UPI-based crypto purchases in 2022, the National Payments Corporation of India (NPCI) clarified that Coinbase had not obtained the necessary approval for UPI integration, prompting the company to suspend its operations.
As Coinbase re-establishes its presence in India, it is also focusing on forming partnerships with local firms to facilitate UPI-enabled services, including KYC verification. This strategic approach aims to ensure compliance with local regulations while enhancing user experience. Furthermore, Coinbase’s Chief Legal Officer, Paul Grewal, has been appointed to the Board of the US-India Business Council (USIBC), which aims to strengthen commercial ties between the two nations. Coinbase is optimistic about contributing to this dialogue and fostering a robust crypto ecosystem in India.
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