Coinbase to Apply for FIU Registration  for a Comeback to the Indian Market

Tags: coinbase, india

Key Takeaways:

• Coinbase is registered under India’s Financial Intelligence Unit (FIU).
• This development paves the way for Coinbase to offer cryptocurrency trading services in India.
• This aligns better with the exchange’s second attempt to empower Indian entrepreneurs and developers in the blockchain space, as opposed to its previous effort

Following an initial and brief venture in 2022, U.S.-based cryptocurrency exchange Coinbase is making a concerted comeback to the Indian market. This is a big step forward, with the company announcing on 11 March 2025 that it has registered with India’s Financial Intelligence Unit (FIU). This particular regulatory hurdle is key to a successful return to a market with a wealth of potential, but beset with regulatory hurdles.

Coinbase Achieves FIU Registration in India: A Foundation for Legitimate Operations

Coinbase’s successful FIU registration is the bedrock of its revamping strategy. On Thursday, Paul Grewal, Coinbase’s chief legal officer, announced: “Coinbase is now FIU-registered,” marking a critical watershed in the company’s ambitions in India. The registration is not just a mere formality; it grants Coinbase the primary legal right to operate as a virtual digital asset (VDA) service provider in the Indian jurisdiction. This immediately brings them under the purview of the country’s Prevention of Money Laundering Act (PMLA).

Compliance with PMLA is a must with stringent regulatory measures in place. This includes, but is not limited to:

• KYC Procedures: Know Your Customer (KYC) procedures ensure that all users verify their identity.
• Transaction Monitoring: Closely monitoring transactions for suspicious activity possibly indicative of money laundering or terrorist financing.
• Mandatory Reporting: Reporting any suspicious activity to both local and international regulatory bodies.
• Preventing Illicit Activities: A strong framework must be in place to prevent money laundering and terrorist financing.
• Audit and Scrutinisation: Operations are regularly audited and scrutinized by Indian authorities.

This also entails regular audits and scrutiny of its operations by Indian authorities, further reinforcing Coinbase’s transparency and legitimacy for its users and stakeholders. This milestone reflects Coinbase’s commitment not only to entering the Indian market but also to pursuing that entry responsibly and in accordance with India’s laws and regulations. This sets a strong precedent that Coinbase is here to stay and is building a long-term, trustworthy business in the sustainable and compliant crypto ecosystem in India.

The Difference Between this Second Comeback and the First? A Focus on Long-Term Ecosystem Building

Coinbase’s first foray into the Indian market back in April 2022 met with a rapid and unexpected setback, reflecting the regulatory uncertainty that characterized the Indian crypto landscape at the time. Soon after it launched UPI (Unified Payments Interface), a widely-used real-time payment system in India, the exchange had to shut down operations within days. The root cause was believed to be a lack of clarity as well as “informal pressure” from the Reserve Bank of India (RBI), the country’s central bank. The National Payments Corporation of India (NPCI) — the umbrella organization overseeing UPI — also publicly distanced itself from any crypto exchanges using the payment platform. And that abrupt stop was a costly lesson learned, highlighting the need to have proactive outreach with regulators and have proper approvals in place prior to releasing a service.

This time around, Coinbase is taking a much more holistic and strategic view. In the past, they would only offer access to a crypto trading platform, but they understood that to be successful in India for the long haul, it has to be more than that. In addition to providing trading services, the company is committed to creating a lively and sustainable local blockchain ecosystem. According to a Coinbase blog post, the plan is to launch initial retail services later this year, and this will be followed by “additional investment and products in India.” This implies a gradual deployment so that Coinbase can roll out new parts of products and services when the regulatory climate changes.

At the core of their strategy lies an enhanced focus on their developer platform and tools, most notably via their Base network. Coinbase’s measures are expected to enable developers in India to create solutions tailored to the local landscape and gain access to state-of-the-art infrastructure. Coinbase’s emphasis on developer empowerment is tactically in line with the Indian government’s ambitious “Digital India” campaign, which intends to make India a digitally empowered society and knowledge economy. Where their first attempt was met with some trepidation, their current offices show the company is now committed to complying with local laws, enabling the local Blockchain ecosystem, and has shown they plan to be a part of the community for the long haul.

Insider Perspective: Empowering Indian Builders

John O’Loghlen, Coinbase’s Regional Managing Director for APAC, said in a prepared statement describing that vision: “India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations. By expanding access to our trusted platform and tools such as Base, we aim to empower a new generation of builders to stay home, innovate locally, and scale globally.” According to Chainalysis, India ranks the highest among CSAO countries for crypto adoption. The new developer platform and existing compliance with regulations indicate an opportunity to succeed where in the past they didn’t.

India ranks highest for crypto adoption among CSAO countries. Source: Chainalysis

O’Loghlen says many Indian entrepreneurs have historically been drawn abroad. He believes cryptocurrency, and Coinbase’s platform specifically, can change that story, and create the conditions for Indian talent to flourish at home, building best-in-class products out of India.

Coinbase’s renewed commitment to the Indian market, backed by its FIU registration and a revised strategy, signifies a potentially pivotal moment for the cryptocurrency industry in India. Whether Coinbase can successfully navigate the regulatory complexities and cultivate a thriving local ecosystem remains to be seen. However, this renewed effort could facilitate broader acceptance of crypto and blockchain tech in a nation with vast potential. Coinbase could be a catalyst in this transformation of crypto in India.