Coinbase Eyes India Re-entry

Coinbase Returns to India?

Coinbase, a major cryptocurrency exchange, is reportedly engaging with Indian regulators to restart operations in the country after pausing new user onboarding in June 2023. This follows a TechCrunch report citing sources familiar with the matter.

Key Challenges and Opportunities

Coinbase's re-entry hinges on obtaining necessary licenses, particularly from the Financial Intelligence Unit (FIU-IND). The timeline remains unclear, dependent on regulatory approvals. The Indian government's approach to crypto regulation is evolving, influenced by developments in other jurisdictions like the US's more crypto-friendly stance. This shift may lead to a re-evaluation of India's crypto policies, including the discussion paper on crypto regulation.

• Regulatory Hurdles: Strict regulations and banks' reluctance to work with crypto firms due to central bank pressure pose significant challenges.
• Taxation: India currently imposes a 1% tax-deducted-at-source (TDS) on crypto transactions and a 30% capital gains tax.
• Competitive Landscape: Binance successfully resumed operations in India last year, highlighting the potential for growth in the market.

Despite the challenges, Coinbase is optimistic about India's crypto market. A Coinbase spokesperson emphasized the company's commitment to adhering to Indian financial regulations. This follows Coinbase's recent success in obtaining authorization from the UK's Financial Conduct Authority (FCA) to offer crypto services directly, showcasing the firm's global regulatory compliance efforts.

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