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Coinbase, a leading U.S.-based cryptocurrency exchange, is preparing to re-enter the Indian market after ceasing operations over a year ago. The company is actively engaging with Indian authorities, including the Financial Intelligence Unit (FIU), to secure the necessary approvals for its return.
This move comes as India reassesses its stance on cryptocurrencies amid evolving global regulatory landscapes. Economic Affairs Secretary Ajay Seth emphasized that India’s approach to cryptocurrencies cannot be unilateral due to their borderless nature.
Despite stringent regulations and high trading taxes, India has emerged as the global leader in cryptocurrency adoption for the second consecutive year, according to a report by Chainalysis. The report noted the high usage of centralized and decentralized finance assets in India from June 2023 to July 2024.
Coinbase’s initial entry into India in 2022 was short-lived, as the company halted operations due to regulatory uncertainties. The current re-engagement with Indian regulators indicates a renewed effort to establish a foothold in one of the world’s most populous markets.
The outcome of Coinbase’s discussions with Indian authorities remains to be seen, but the company’s proactive approach reflects its commitment to expanding its global presence while navigating complex regulatory environments.
