Coinbase’s India Relaunch Strategy
After halting operations in India over a year ago, Coinbase is now seeking regulatory approval to reenter the Indian market.
Key Developments:
Key Highlights:
- Regulatory Talks: Engaging with the Financial Intelligence Unit (FIU) to secure necessary approvals.
- Market Strategy: Planning a local partnership model to navigate India’s complex regulations.
- Executives Visiting India: Coinbase leaders will meet regulators in March to discuss compliance measures.
Why Did Coinbase Exit India?
Key Highlights:
- Regulatory Crackdown: India’s National Payments Corporation (NPCI) blocked Coinbase’s UPI integration in 2022.
- Taxation Issues: 30% crypto tax & 1% TDS rule made it difficult for exchanges to compete with offshore platforms.
India’s Evolving Crypto Regulations
Key Highlights:
- FIU Cracked Down on Binance and Other Offshore Exchanges in June 2024.
- India Reassessing Its Crypto Stance amid global policy shifts but high tax burdens remain a challenge.
Despite regulatory uncertainty, India remains the world’s top country for crypto adoption (Chainalysis Global Crypto Index 2024). Coinbase’s strategic relaunch aims to tap into this growing market while ensuring regulatory compliance.
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