Coinbase’s Grand Return: Will It Survive the Indian Crypto Circus?

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Story Highlights

  • Coinbase has finally decided to play nice with the FIU, hinting at a retail comeback in India.
  • Thanks to India’s relentless crackdown on unlicensed exchanges, Coinbase sees a golden opportunity to waltz back in.
  • With rules tighter than a drum and taxes that could make a saint weep, India’s crypto scene is a bit of a muddle.

After a two-year hiatus that could only be described as a dramatic soap opera, Coinbase has finally decided to register with India’s Financial Intelligence Unit (FIU). This is like getting a VIP pass to a party where everyone else is still trying to figure out if they’re on the guest list. The exchange is planning to dust off its retail services and make a grand entrance in 2025, though the exact timing remains as mysterious as the last season of a popular TV show.

Coinbase first dipped its toes into the Indian market back in April 2022, using the Unified Payments Interface (UPI) for transactions smoother than a buttered otter. But alas, the joy was short-lived! The National Payments Corporation of India (NPCI) later declared it was blissfully unaware of any crypto exchange using UPI, effectively giving Coinbase the cold shoulder and a one-way ticket out of India’s most popular digital payment system.

Coinbase Gets the Green Light from FIU for a Comeback

In a plot twist worthy of a best-selling novel, the exchange reported feeling the heat from the Reserve Bank of India (RBI), which likely nudged it to hit the brakes on its services. The crypto laws in India are as clear as mud, and the government has yet to unveil a comprehensive set of digital asset regulations. Meanwhile, the taxman is sharpening his pencil, with a hefty 30% tax on crypto profits and a 1% tax deducted at source (TDS) that makes trading in India feel like a game of Monopoly where you always land on Boardwalk but can’t afford the rent.

In early 2024, India decided to play hardball with offshore exchanges that were not following the anti-money laundering (AML) rules. Binance, KuCoin, and OKX were shown the door for not adhering to the registration requirements at FIU, leaving them to ponder their life choices.

Coinbase’s return could shake up the Indian cryptocurrency market, especially after local exchange WazirX lost nearly half its reserves due to a security breach that could only be described as a “whoopsie-daisy.” Additionally, Indian exchanges like CoinSwitch and CoinDCX, both of which are backed by Coinbase, might just find themselves riding the wave of this grand return.

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2025-03-12 19:06