After pulling out of India in 2022, Coinbase is planning to return. The company is consulting with Indian regulators to obtain approval for resuming operations.
Coinbase's Previous Attempt in India
In April 2022, Coinbase launched in India with support for UPI payments. However, three days later, the National Payments Corporation of India (NPCI) distanced itself from Coinbase, forcing the exchange to halt services. CEO Brian Armstrong later mentioned informal pressure from the Reserve Bank of India, making operations difficult.
Regulatory Challenges
A significant challenge is taxation. After the introduction of a 30% tax on crypto income and a 1% transaction levy, India's crypto trading volume plummeted. Due to regulatory uncertainty, most Indian banks avoid dealing with crypto firms, complicating exchanges' operations.
Opportunities in the Indian Market
Coinbase's return could shake up the Indian crypto market, currently dominated by local players CoinSwitch and CoinDCX. Following WazirX's market exit, there is a gap that a global player like Coinbase could fill. Success will depend on how well Coinbase can adapt to India's evolving crypto policies.
Coinbase is treading carefully to avoid past regulatory issues. If it aligns with India's crypto policies, the company has a chance to succeed in its return.
