Coinbase resumes user registration in India after 2-year hiatus
What's the story
Coinbase, a leading cryptocurrency exchange, has reopened its app for user registration in India after a two-year break. The company had first launched its services in the country in 2022 but had to suspend support for the Unified Payments Interface (UPI) payment network within days. This was due to the National Payments Corporation of India (NPCI) refusal to acknowledge Coinbase's operations.
Strategic shift
Withdrawal and future plans
In 2023, Coinbase withdrew all services for Indian users, asking them to off-board their accounts. However, the company has now started user onboarding through early access. Speaking at the India Blockchain Week (IBW), John O'Loghlen, APAC Director at Coinbase revealed that they plan to introduce a fiat on-ramp in 2026. This would allow Indian users to deposit money and buy crypto directly from the app.
Regulatory compliance
Engagement with Indian regulatory authorities
After its withdrawal, Coinbase started engaging with the Financial Intelligence Unit (FIU), a government agency that regulates transactions and fraud. The company registered with them this year and has since been working to comply with local regulations. Despite India's strict crypto regulations and taxation policies, Coinbase remains optimistic about its future in the country.
Growth strategy
Coinbase's investment and hiring plans in India
Despite the challenges posed by strict regulations and high taxation on crypto income, Coinbase is betting big on India. The company's venture arm has invested more in local exchange CoinDCX at a $2.45 billion post-money valuation. Coinbase also plans to expand its team of over 500 employees in the country by hiring for various roles focusing on both local and global markets.