Coinbase Engages with Indian Authorities for Market Reentry
Coinbase is the largest cryptocurrency exchange in the United States and is actively working to return to the Indian market after it ceased operations in 2022 due to regulatory barriers.
The exchange interacts with Indian authorities, including the Financial Intelligence Unit (FIU), to ensure approval and compliance with local regulations.
Coinbase enhances the re-entry of the Indian market
Coinbase hyped India in April 2022, supporting the widely used joint payment interface (UPI) in the country. But, just three days later, the National Payment Company of India (NPCI) Refusal to acknowledge Coinbase’s actions,Service Unavailable.
India’s strict tax policy It has also been a long-term concern for cryptocurrency market participants. The government imposed 30% Crypto income tax And 1% transaction levy, discouraging retail investors and reducing liquidity.
Many diplomatic exchanges, including binance and Kraken, are facing scrutiny from Indian regulators, ruling that they are Illegal operation. However, some companies (including binance) have since complied with FIU requirements and resumed operations.
Coinbase is now taking a similar approach, actively engaging with Indian regulators to ensure compliance. However, the timeline for its restart remains uncertain, depending on the time it takes to obtain a FIU license and other necessary approvals. Analysts expect substantial liquidity if approved.
Analyst Kyle Chassé: “The huge liquidity can flow from it.” Observed.
Coinbase Stock, Coin soared this news, and as of this writing, it was trading at $274.80.
However, it is worth noting that this is not the first attempt by Coinbase to adapt to India’s regulatory environment. In the second half of 2023, exchange Adjusted service Around the country’s G20 summit, it may be to deal with changing regulations.
This time, Coinbase appears to take a higher approach by ensuring regulatory compliance before restarting the service.
“…The last time they got Rekt by regulators. If they haven’t upgraded yet, it’s just another liquidity trap,” said user on x (Twitter) Comment.
The potential impact of crypto market in India and Coinbase
Coinbase’s interest in India is aligned with its broader international expansion plans. Its chief legal officer Paul Grewal was recently appointed to the global board of directors of the United States Business Council (USIBC). The move highlights the company’s strategic efforts to strengthen U.S.-India links in fintech and digital assets.
“I am honored to join the USIBC Board of Directors to help strengthen the bridge between India and the United States to shape the future of finance.” statementquote Greval.
Despite regulatory challenges, India remains an important blockchain, Cryptocurrency Innovation center. The country has seen a surge in Web3 adoption, with developers and startups actively contributing to the space.
However, due to regulatory uncertainty and High tax burden. Coinbase’s return could shake India’s crypto market Security vulnerabilities.
The Indian market is now dominated by Coinswitch and Coindcx, which are backed by Coinbase. Coinbase’s successful re-entry could provide competition and provide a stronger platform for Indian traders.
“This move could impact competition between crypto markets and reshape local communications,” said the user on X additional.
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