If you’re interested in how major crypto firms influence regulatory changes, Coinbase’s recent efforts in India offer a clear example. During a key meeting, the company pushed for reforms that could reshape the country’s approach to digital assets. Their focus on clearer rules and collaboration with regulators hints at a broader strategy to unlock India’s crypto potential—yet, the full scope and impact of these proposals remain to be seen.
Coinbase is making a significant move in India by pushing for crypto reforms and securing regulatory approval to operate legally. This marks a pivotal step in its strategy to establish a strong foothold in one of the world’s most dynamic and promising markets.
Coinbase advances its India strategy by advocating for crypto reforms and securing legal operating approval.
In early 2025, Coinbase registered with India’s Financial Intelligence Unit (FIU-IND), a crucial requirement for all crypto exchanges to comply with anti-money laundering laws. This registration signifies official acceptance of Coinbase’s operations within the country, allowing it to navigate the complex regulatory landscape confidently.
With this milestone achieved, Coinbase plans to roll out its initial retail crypto trading services later in the year, signaling its commitment to serving Indian users and expanding its global footprint. This move aligns with Coinbase’s broader international strategy, focusing on markets that embrace crypto regulation and innovation.
Your understanding of Coinbase’s journey in India begins with its early efforts in 2017, when it first enabled Indian users to trade cryptocurrencies. However, regulatory uncertainties soon hampered its expansion, especially after the Reserve Bank of India (RBI) banned banks from supporting crypto businesses in 2018. This ban significantly impacted Coinbase and other exchanges’ operations, creating a challenging environment.
It wasn’t until 2020 that the Supreme Court of India overturned the RBI ban, reopening the doors for crypto trading and related activities. Following this legal victory, Coinbase accelerated its Indian operations, introducing professional trading services and recruiting local talent to bolster its presence.
Yet, regulatory uncertainties persisted, prompting Coinbase to suspend UPI support just days after its 2022 launch, citing concerns over compliance and future legislation.
The Indian regulatory environment remains strict, with cryptocurrencies subjected to a 30% tax on income from virtual digital assets, plus a 4% cess. An additional 1% tax deducted at source (TDS) applies to crypto transactions, limiting deductions and increasing compliance costs.
FIU-IND enforces rigorous AML standards, with hefty fines for violations—such as Binance’s approximate $2.17 million penalty and Bybit’s $1.07 million fine. All crypto exchanges must register as reporting entities with FIU-IND to continue operating legally, reinforcing the government’s intent to regulate and monitor the market closely. India’s government has signaled ongoing efforts to revise crypto regulations, including potential amendments to existing laws to foster innovation.
The Reserve Bank of India and national authorities still hold the power to introduce further legislation, including restrictions on fiat-to-crypto transactions, keeping the regulatory environment uncertain but progressively clearer.
India’s market potential remains highly attractive. Its young, tech-savvy population is increasingly turning to crypto for income and investment opportunities. The country’s booming startup scene and growing blockchain development community, which has expanded from 3% to 12% of global developers since 2018, bolster its position as a crypto hub.
Coinbase views India as a vital part of its mission to promote economic freedom through blockchain technology. By establishing compliance and working closely with regulators, Coinbase aims to differentiate itself from competitors like CoinDCX, Binance, and KuCoin, solidifying its role in India’s evolving crypto landscape.
This strategic approach underscores Coinbase’s commitment to long-term growth in a market with immense potential for innovation and institutional investment.
