Coinbase reinstates user signups in India and launches its app after two years.
In 2023, the US-based crypto exchange shut down its operations due to regulatory issues and is now fully compliant with local regulations.
Compliance with Indian authorities leads to the return
This is because reopening is after Coinbase was registered with the Financial Intelligence Unit of India this year, and will be required to comply with anti-money laundering regulations. Coinbase‘s director of Asia-Pacific, John O’Loghlen, said a fiat on-ramp would be announced next year at the India Blockchain Week. The purpose of this feature is to enable Indian users to add money to the site and purchase cryptocurrencies directly.
In 2022, Coinbase had already entered India, but halted its activities because the National Payments Corporation of India did not accept its Unified Payments Interface transactions. In 2023, the exchange paused services outright and requested its users to close their accounts, expelling millions of customers from its international business. O’Loghlen termed this choice a hard yet necessary one to be made to start afresh in India.
Potential in the market with regulatory barriers
Coinbase’s interest in India is indicative of a broader trend in which internet companies are chasing the swelling Indian digital user base, which is currently the second-largest in the world. According to analysts, as the number of AI companies and social media platforms continues to grow rapidly, cryptocurrency companies are hampered by stringent regulations and high tax rates on digital assets.
Cryptocurrencies in India are taxed at 30% on 1% gains, and you will also pay a transaction tax. Analysts are concerned that these taxes will deter frequent trading. Nevertheless, O’Loghlen was optimistic that the government could come to the rescue, reduce crypto taxation, and help widen its application.
Investments in development and locality
Coinbase is continuing to expand its presence in India by investing in CoinDCX, which is currently valued at $2.45 billion, and adding 500 employees. O’Loghlen underlined that the exchange should focus on offering a safe, convenient experience comparable to those of Indian applications such as Zepto and Flipkart.
The exchange is planning to recruit for positions targeting both local and international markets. Coinbase’s interest in India is an indication of its long-term commitment to the region despite regulatory challenges and taxation.
Coinbase is fully operational in India again, overcoming regulatory limitations to offer secure access to cryptocurrency and expand its service and presence in the country. India has been a key strategic location for crypto companies worldwide, and this reopening is a precursor to higher adoption in a highly regulated country.
The post Coinbase resumes user registrations in India after two-year break first appeared on Coinfea.
