U.S.-based cryptocurrency exchange, Coinbase Global COIN, has taken a significant step towards offering its services in India. The company announced on Tuesday that it has successfully registered with India’s Financial Intelligence Unit (FIU), paving the way for the launch of its crypto trading services in the country.
According to the statement released by Coinbase, the exchange aims to kick off its retail services within the year and follow up with additional offerings and products. However, a precise timeline for this launch has not been revealed.
The entry of Coinbase into the Indian market comes amidst a surge in the popularity of cryptocurrency in the country. A notable demographic of young Indians are exploring the potential of crypto, with many enrolling in trading academies to supplement their regular earnings.
India already hosts several crypto exchanges, including CoinDCX, Binance, and KuCoin. “India represents one of the most promising markets globally, and we are thrilled to increase our investment here, fully adhering to local regulations,” stated John O’Loghlen, Coinbase’s regional managing director for Asia Pacific.
In India, providers of virtual digital asset services like crypto exchanges are mandated to register with the FIU. They are also required to comply with the country’s anti-money laundering rules. Despite imposing a 30% tax on crypto trading gains, which is among the highest worldwide, India is yet to lay out specific regulations for the asset class. This area has been under scrutiny since Donald Trump’s victory in the U.S. Presidential election last year.
Recent U.S. policy changes and global regulatory shifts have prompted India to reconsider its stance on cryptocurrencies, a senior official shared with Reuters last month.
