Coinbase’s Comeback: What Its India Re-Entry Signals for Crypto’s Future

By Eshorjit : Infinitrix News Team | May 6, 2025

New Delhi, India — Coinbase, the largest U.S.-based crypto exchange, has officially re-entered the Indian market after receiving regulatory clearance from the Financial Intelligence Unit (FIU), a key anti-money laundering agency under the Ministry of Finance.

What Triggered Coinbase’s Return?

This move follows nearly two years of dormancy in India after Coinbase had paused operations citing regulatory confusion. Industry observers suggest the shift reflects both improved local dialogue and global political support for crypto.

“This is a clear sign that India’s crypto policy is maturing. A regulated giant like Coinbase wouldn’t re-engage unless there was a framework to operate safely,” said Mitali Rao, Blockchain Policy Fellow at CryptoIndia Foundation.

Coinbase now joins 28 other registered Virtual Asset Service Providers (VASPs) under India’s updated compliance rules. The FIU registration is mandatory for all crypto platforms operating in the country.

Retail Onboarding Begins Cautiously

Coinbase plans to begin with basic services such as crypto trading and wallet integrations. Initially, it will focus on tier-1 cities with gradual outreach to retail investors via educational campaigns.

“We’re prioritizing compliance and education. India deserves global-quality access with local safeguards,” said Paul Grewal, Chief Legal Officer, Coinbase.

The platform is also collaborating with local banks to ensure real-time UPI integrations—an issue that disrupted its 2022 rollout. Early reports suggest onboarding will be invite-only for the first 60 days.

What This Means for Indian Startups

Coinbase’s return could recalibrate the Indian crypto ecosystem, especially for startup exchanges and DeFi projects. Some analysts view it as competition, others as a legitimizing force.

“Coinbase’s presence will force domestic platforms to innovate faster. It also signals to investors that India is back on the global crypto map,” said Ashwin Bhagat, co-founder of TokenBazaar.

Coinbase has hinted at launching developer grants and accelerator programs to foster blockchain innovation in India. These would include funding, mentorship, and cross-border listing support.

Changing Global Crypto Politics

Industry insiders believe global politics played a role in unlocking India’s crypto space. U.S. policy shifts under the Biden-Trump transition reportedly included behind-the-scenes encouragement for major U.S. tech firms to re-engage in Asian markets.

This geopolitical push, combined with India’s domestic fintech ambitions, created fertile ground for Coinbase’s return.

Regulatory Outlook Remains Cautious

Despite the progress, India has not yet released a formal crypto bill. The Reserve Bank of India (RBI) continues to advocate for stablecoin restrictions, and full taxation guidelines are still evolving.

“It’s still a grey zone—but Coinbase’s FIU registration shows that clarity is coming, at least operationally,” said Rao.

Coinbase will continue to operate under strict AML and KYC obligations. The FIU can suspend its license if non-compliance is observed.

Conclusion: A Signal of Momentum

Coinbase’s re-entry is more than a business move—it’s a signal. For India’s crypto ecosystem, it marks a rare moment of convergence between regulation, innovation, and mainstream adoption.