Big news for crypto in India! Coinbase, America’s largest cryptocurrency exchange, is gearing up to relaunch operations in India after securing a crucial green light from regulators.

This exciting development comes on the heels of growing global support for digital assets.

Coinbase is bouncing back in India, leaving past regulatory hurdles behind

You might recall that Coinbase pressed pause on its Indian operations back in 2022. CEO Brian Armstrong cited “informal pressure” coming from the central bank, which has been quite vocal about its reservations regarding cryptocurrency adoption.

But now, things are looking up! Coinbase announced on Tuesday that it’s received the thumbs-up to register with India’s Financial Intelligence Unit (FIU). This agency plays a vital role in monitoring and preventing money laundering within the country.

For Coinbase, this isn’t just about business as usual. Their return to India signals a strategic move to gain a strong foothold in one of the world’s fastest-growing markets for all things digital finance.

The plan is to start with a limited relaunch, offering retail trading services initially, pending final registration from the regulatory body. This registration is anticipated before the year wraps up. From there, they intend to gradually expand into offering their wider range of crypto products.

Coinbase isn’t alone in seeking formal registration. Major players like Binance and others have also recently registered with the FIU, following India’s push to regulate overseas operations they believed were sidestepping local rules. John O’Loghlen, Managing Director for Asia-Pacific at Coinbase, put it plainly: “India is one of the most exciting market opportunities in the world right now.”

Coinbase’s arrival is poised to shake up India’s booming crypto scene

Despite some regulatory uncertainty, India has seen a massive surge in crypto adoption over the past few years.

In fact, India is now the fifth-largest nation globally when it comes to crypto adoption, with millions actively trading, investing, and exploring the exciting world of digital assets.

Even with a 30% tax on crypto trading profits and a 1% tax deducted at source for each transaction, Indian investors are showing no signs of slowing down and continue to jump into the crypto market.

Local exchanges like CoinDCX, WazirX, and Bitbns have been key in keeping the crypto momentum going strong within the country.

Plus, numerous global platforms, including Binance and KuCoin, have found ways to continue serving Indian customers.

Coinbase’s re-entry is expected to be a significant boost for India’s crypto ecosystem. It’s likely to instill greater confidence in investors, spur further innovation in the industry, and provide a solid platform for blockchain and decentralized finance startups looking to expand across borders.

A globally recognized and trusted exchange like Coinbase can really help shape the future of crypto in India by setting high standards for security, compliance, and customer protection.

India’s crypto journey: Navigating a careful but evolving regulatory landscape

For a while now, India has been taking a cautious and somewhat uncertain path when it comes to crypto policy. The Reserve Bank of India has voiced increasing concerns about the potential financial risks of digital currencies, even warning that their growth could disrupt the economy and impact the monetary system.

At the same time, the Indian government has generally taken a balanced approach, refraining from a complete embrace or outright ban on crypto.

Coinbase getting registered is a noteworthy signal. It suggests a possible shift towards a more structured regulatory approach, moving away from purely restrictive policies.

Ultimately, Coinbase’s success in India might hinge on the specifics of the federal regulatory approvals they receive, the partnerships they can forge with Indian financial institutions, and their ability to win back the trust of Indian users after their previous exit.

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Source: cryptopolitan.com