Coinbase, the prominent American cryptocurrency exchange, is actively making efforts to re-enter the Indian market after suspending its operations in the country over a year ago. Sources familiar with the matter reveal that Coinbase is in discussions with Indian authorities, including the Financial Intelligence Unit (FIU), to secure the necessary approvals.
Coinbase’s potential return to India comes after it abruptly halted its operations in 2022, just days after launching with support for the popular United Payments Interface (UPI). The suspension was reportedly triggered by “informal pressure” from the Reserve Bank of India, which has maintained a cautious approach towards cryptocurrency trading in the country.
Despite the challenges, Coinbase remains optimistic about the opportunities in the Indian market, which boasts a significant and growing web3 ecosystem. The company has expressed its commitment to complying with all applicable regulatory requirements.
Coinbase’s renewed interest in India aligns with its broader international expansion strategy. Its CFO, Alesia Haas, has indicated the company’s intention to expand its reach globally. Additionally, Paul Grewal, Coinbase’s chief legal officer, has recently joined the board of directors of the U.S.-India Business Council, further signaling the company’s interest in the Indian market.
The Indian cryptocurrency market has experienced a period of turbulence, including the collapse of the WazirX exchange. However, the market remains relatively small due to the government’s imposition of a 30% tax on crypto income and a 1% transaction fee.
Despite these challenges, Coinbase’s potential re-entry could provide a boost to the Indian cryptocurrency industry, offering a well-established platform with a global reputation. The company’s success in re-establishing its presence in India will depend on securing the necessary regulatory approvals and navigating the country’s complex regulatory landscape.
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