Coinbase, one of the world’s largest cryptocurrency exchanges, has officially registered with India’s Financial Intelligence Unit (FIU), paving the way for its reentry into the Indian market. This development marks a significant shift after Coinbase had previously discontinued operations in the country due to regulatory challenges in 2023. The approval aligns Coinbase with India’s stringent anti-money laundering (AML) regulations and sets the stage for a retail services launch later in 2025.
Background: Coinbase’s Journey in India Coinbase initially entered the Indian market in April 2022, supporting crypto purchases through the Unified Payments Interface (UPI). However, regulatory concerns quickly emerged when the National Payments Corporation of India (NPCI) denied awareness of crypto exchanges using UPI. This led to Coinbase suspending the service, and by September 2023, the exchange had exited India entirely due to mounting compliance issues and taxation policies, including a 30% tax on crypto profits and a 1% TDS on transactions.
Regulatory Approval and FIU Registration On March 11, 2025, Coinbase announced via X (formerly Twitter) that it had registered with the Financial Intelligence Unit (FIU) of India. The FIU, under the Ministry of Finance, monitors financial transactions to combat money laundering and terrorist financing. By complying with the Prevention of Money Laundering Act (PMLA) requirements, Coinbase has taken a major step toward operating legally in India. Registration mandates include:
- Conducting Know Your Customer (KYC) verifications
- Maintaining transaction records
- Reporting suspicious activities to regulatory authorities
This move places Coinbase alongside other global exchanges such as Binance and KuCoin, which have also registered with the FIU after facing regulatory pressure.
Planned Retail Launch and Future Investments Coinbase aims to launch its retail services in India later in 2025, though specifics regarding product offerings and payment integration remain undisclosed. According to a Reuters report, the company intends to make further investments and expand its product suite, although it has not yet confirmed whether UPI will be reinstated as a payment method.
John O’Loghlen, Coinbase’s Regional Managing Director for Asia Pacific, highlighted the significance of India’s market, 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.” This statement underscores Coinbase’s strategic commitment to India despite past hurdles.
Market Competition and Implications Coinbase’s reentry intensifies competition in India’s crypto landscape, currently dominated by domestic exchanges like WazirX and CoinDCX, along with global platforms such as Binance and KuCoin. The presence of more exchanges could lead to lower fees, improved liquidity, and enhanced trading options for Indian investors. However, regulatory uncertainty, including potential future restrictions or higher taxes, remains a challenge.
India’s Evolving Crypto Regulations India has maintained a cautious stance on cryptocurrencies, emphasizing compliance with global AML and counter-terrorism financing (CFT) standards. The government has pushed for international regulatory frameworks through G20 discussions and has enforced stringent taxation policies. As of 2025, 28 VDA (Virtual Digital Asset) service providers, including major exchanges, have registered with the FIU, highlighting the increasing oversight in the industry.
Comparison of FIU-Registered Crypto Exchanges
| Exchange | Registration Date | Key Compliance Actions | Operational Status in India |
|---|---|---|---|
| Coinbase | March 11, 2025 | FIU registration, retail launch planned | Pending (Expected in late 2025) |
| Binance | August 2024 | Paid $2M penalty, resumed operations | Active |
| KuCoin | May 2024 | Paid Rs 35.5 lakh penalty, ban lifted | Active |
| CoinDCX | March 2023 | Early FIU registrant, PMLA compliant | Active |
Coinbase’s recent approval places it in a strong position, but it still lags behind competitors that have already resumed operations.
Conclusion Coinbase’s approval to launch in India represents a major milestone in its global expansion strategy. By aligning with local regulations, the exchange aims to tap into one of the world’s largest potential crypto markets. However, uncertainties surrounding payment integrations, taxation, and future regulatory changes could impact its success. As Coinbase prepares for a retail launch later in 2025, investors and traders should stay informed about further developments in India’s evolving crypto landscape.
