Coinbase Registers with India's Financial Intelligence Unit to Offer Cryptocurrency Trading

US-based cryptocurrency exchange Coinbase has registered with the Financial Intelligence Unit – India (FIU-IND) to offer cryptocurrency trading services in the nation

Coinbase has registered with the Financial Intelligence Unit – India (FIU-IND) to offer cryptocurrency trading services in the nation, according to a report by Reuters.

The company plans to introduce its initial retail services later in 2025, followed by further investments and products, although no well-defined timeline was provided.

“India is one of the most exciting markets today, and we are proud to deepen our investment here while staying fully compliant with local regulations,” said John O’Loghlen, the Asia Pacific Managing Director for Coinbase.

The cryptocurrency company’s foray into India comes at a time when interest in the virtual digital asset is cresting in the country, with many young Indians venturing into the crypto domain to supplement their regular income sources.

Coinbase joins cryptocurrency exchanges such as CoinDCX, Binance, and KuCoin, which are already operating in India.

Cryptocurrency exchanges in the country must first register with the FIU-IND as reporting entities, in addition to complying with anti-money laundering regulations.

Recently, the crypto platform Bybit had to pay ₹9.3 crore for failing to adhere to these regulations, especially given the recent large-scale crypto heist from the company.

Moreover, Binance resumed its India operations in August last year after registering with the FIU-IND, following a seven-month period of inactivity due to regulatory violations.

This move follows the company’s reporting to the U.S. Securities and Exchange Commission (SEC) for its role in facilitating the theft of crypto assets from a hot wallet.

The company’s entry into the Indian crypto market comes at a very crucial juncture for the digital asset in the country, as Indian authorities are reviewing their stance on cryptocurrency in light of policy shifts on a global scale.

Last month, the Department of Economic Affairs (DEA) secretary Ajay Seth revealed that India would be planning to revisit its cryptocurrency regulatory framework, considering the ongoing changes in the global scenario.

Highlighting the pressing need for swift action, Seth pointed out that India's stance on cryptocurrencies would be reassessed to align with the evolving landscape in the domain of virtual assets.

Similarly, the current Reserve Bank of India (RBI) Governor, Sanjay Malhotra , stated last month that the Indian government’s hardline stance on cryptocurrency could potentially soften.

During an interview with the Economic Times, Malhotra hinted at a possible shift in the government's attitude towards cryptocurrencies.

Another important point to note is that this is not Coinbase’s first foray into the Indian cryptocurrency landscape.

The company first ventured into India in 2022 but had to suspend its services within three days as the National Payments Corporation of India (NPCI), which regulates the Unified Payments Interface (UPI), refused to recognise its operations.

At that time, Coinbase CEO Brian Armstrong stated that the company shut down its UPI transactions due to informal pressure from the RBI.