Coinbase has made a strategic move to re-enter the Indian cryptocurrency market after previously pausing operations due to regulatory hurdles. The company is currently facilitating user registration for its platform, allowing users to engage in crypto-to-crypto trading. Plans are in place to introduce fiat on-ramps by 2026, which will enable users to fund their accounts and purchase cryptocurrencies directly using local currency.
This latest development follows a brief period of operations that Coinbase had in India during 2022 before facing challenges that led to a suspension and a complete withdrawal earlier in 2023. In a bid to stabilize its footing, Coinbase has resumed dialogues with Indian regulatory bodies, including the Financial Intelligence Unit. This engagement is crucial for both compliance and fostering a transparent operational environment in the cryptocurrency sector.
Additionally, in October, Coinbase took a notable step by investing in CoinDCX, a prominent exchange in India. CoinDCX, which is also registered with the Financial Intelligence Unit, offers features like INR-based futures trading, showcasing its sophisticated market tools. With other exchanges, such as Binance already operational in India after resolving compliance matters, the competition is expected to intensify, potentially reshaping the landscape for cryptocurrency exchanges in the region.
As Coinbase expands its services in India, the introduction of fiat on-ramps could attract a larger audience of retail investors, providing them with the opportunity to participate more easily in cryptocurrency markets. Investors should monitor these developments closely, as they may influence the dynamics of not only Coinbase but the broader crypto ecosystem in India and beyond.