Coinbase has resumed crypto-to-crypto trading in India, a move confirmed by its APAC Director John O’Loghlen at India Blockchain Week. This re-entry into the Indian market signifies Coinbase's commitment to compliance with India's Financial Intelligence Unit (FIU-IND) regulations.
The reopening of Coinbase's operations in India is a strategic re-entry that emphasizes regulatory compliance. This development is expected to impact the dynamics of the Indian crypto market, which has been navigating various regulatory challenges.
Key Developments and Features
Coinbase has resumed crypto operations in India, allowing user onboarding and crypto-to-crypto trading. This reopening was confirmed by John O’Loghlen, Coinbase's APAC Director, during the India Blockchain Week. Coinbase's operations in India are now in alignment with the Financial Intelligence Unit (FIU-IND) regulations.
The platform had previously halted operations due to regulatory issues but has now facilitated account setups and trading without fiat integration. This means that while users can register and trade cryptocurrencies, they cannot directly use Indian Rupees or other fiat currencies for transactions on the platform at this time.
Market Impact and Future Outlook
Coinbase's return to India aims to improve accessibility for Indian users to trade using the Coinbase platform. However, transactions remain limited to crypto pairs, excluding fiat on-ramps, which could affect liquidity dynamics within the Indian crypto ecosystem.
Financially, this move could influence Indian crypto markets by connecting local players to global platforms. Politically, the compliance with FIU-IND regulations strengthens Coinbase's standing in India, though it does not currently involve participation from the National Payments Corporation of India.
"Coinbase has reopened registrations for Indian users with crypto-to-crypto trading, and we are working towards launching a regulated fiat on-ramp in 2026."
Coinbase's decision to resume operations without immediate fiat options reflects an adaptation to the current regulatory landscape. This approach signals a shift towards enhanced compliance and deeper engagement within the Indian market. Potential outcomes of this strategic move include increased crypto adoption in India, potentially accelerated by Coinbase’s presence. The alignment with FIU-IND could establish a precedent for compliance-driven access for international platforms, thereby affecting the broader Indian crypto ecosystem.