Coinbase is working in his re -entry to India more than a year after the operations in the most populous nation in the world officially ceased.
The exchange of American cryptocurrencies is being involved with several Indian authorities, including the Financial Intelligence Unit (FIU), an Indian government agency that examines financial transactions, according to two sources familiar with the matter that requested anonymity since the deliberations are continuous and private.
Coinbase’s work on his return follows a tumultuous history in the market in southern Asia. Binance, the largest cryptocurrency exchange in the world, resumed operations in India last August after registering with the FIU after a high regulatory of seven months. The measure established a precedent for foreign cryptography exchanges seeking to operate in India.
The previous attempt to launch services in India ended abruptly in 2022. The exchange was launched with a lot of fanfare in April of that year, presenting support for the Payments United System (UPI) widely used. The company had to suspend the service only three days later after the National Payment Corporation of India, which Supervisa UPI, refused to recognize coinbase operations.
Brian Armstrong, executive director of Coinbase, then revealed that the team faced the “informal pressure” of the Bank of the Reserve of India, which had led to the commercial stop. Although cryptocurrency trade is not illegal in India, lenders refuse to do business with virtual asset companies in the country to avoid disturbing the Central Bank, according to many entrepreneurs, investors and other officials.
The moment of potential relaunch of Coinbase depends on how long it takes to ensure the necessary approvals, including a license to operate from the FIU. Previously, the agency ruled that many exchanges, including Kraken and Binance, operated “illegally” in India. (Many of these companies have complied with the FIU, which requires broader revelations in user activities).
“Coinbase is excited about the opportunities in the Indian market and intends to meet the applicable regulatory requirements,” said a company spokesman to britcommerce, who declines to share any update on the FIU record.
Crypto’s exchange interest in India occurs when he explores a broader international expansion, according to the comments made by the CFO of Coinbase Alesia Haas at a recent Goldman Sachs conference.
Although India is a key market abroad for US technological giants, the cryptography market remains small, partly because the local government implemented a 30% tax on cryptographic income and a 1% deduction in each Transaction in 2022.
A re -entry to India could help fill the void left by the implosion of the Wazirx Indian exchange after the company lost approximately half of its reserves in a robbery. Now, Coinswitch and Coindcx are the main Indian encryption exchanges, and both are backed by Coinbase.