Coinbase secures regulatory approval to re-start crypto trading in India
What's the story
US-based cryptocurrency exchange, Coinbase, has announced its return to the Indian market. The company has received necessary approvals from the country's Financial Intelligence Unit (FIU) and plans to launch its initial retail services later this year. This comes more than a year after Coinbase ceased operations in India due to regulatory challenges with UPI services.
Market trends
Coinbase's return aligns with other foreign crypto exchanges
Coinbase's return to India comes after other foreign crypto exchanges made similar moves. Binance, for example, registered with FIU-IND in August last year to resume operations after a seven-month regulatory halt. Coinbase's initial foray into the Indian market in April 2022 was brief, lasting only three days. After launching with UPI support, they were forced to suspend services when the National Payments Corporation of India (NPCI), which manages UPI, did not recognize their operations.
Compliance requirements
Regulatory landscape for virtual digital assets in India
In 2023, the Indian government brought virtual digital assets (VDAs) such as cryptocurrencies under the Prevention of Money Laundering Act (PMLA), 2002. Under this regulation, both offshore and onshore VDA service providers, including crypto trading platforms, are required to comply with PMLA obligations and register with FIU-IND as reporting entities. FIU-IND is a central government agency under the Union Ministry of Finance that receives, processes, analyzes, and disseminates information regarding suspicious financial transactions.
Strategic focus
Coinbase's commitment to Indian market and regulatory compliance
John O'Loghlen, Regional Managing Director for APAC at Coinbase, reiterated his company's commitment to the Indian market. "India represents one of the most exciting market opportunities in the world today," he said. "We're proud to deepen our investment here in full compliance with local regulations." This statement highlights Coinbase's commitment not just to grow in India but also to comply with local laws and regulations.