In a significant move for the Indian cryptocurrency market, Coinbase has resumed its operations in India nearly three years after halting services due to regulatory hurdles. This revival follows the company’s registration with the Financial Intelligence Unit (FIU) in March, marking a pivotal step toward compliance with the country’s regulatory framework.
Coinbase’s return comes shortly after the FIU released a new list of foreign exchanges deemed non-compliant, emphasizing the importance of adherence to established regulations in the burgeoning crypto landscape. The FIU, which enforces anti-money laundering measures in India, had previously flagged several foreign exchanges, including Binance and Bybit, for failing to register appropriately.
After shutting down its services in 2021, Coinbase has launched its initial retail offerings, providing Indian consumers with access to trading functionalities and the ability to receive alerts—a welcome development for many crypto enthusiasts in the region.
The FIU’s actions are part of a broader crackdown on unregistered exchanges, with a recent list identifying 25 offshore platforms that are failing to comply with anti-money laundering regulations stipulated under the Prevention of Money Laundering Act (PMLA) of 2002. These exchanges have been issued show-cause notices demanding that they become compliant by registering with the FIU, implementing Know Your Customer (KYC) protocols, maintaining accurate transaction records, and actively reporting suspicious activities. Non-compliance could result in significant consequences, including the removal of apps and websites from Indian access.
Notable entities flagged by the FIU include both well-known and lesser-known exchanges such as Paxful, PrimeXBT, BitMex, CoinEx, HitBTC, CEX.IO, and Poloniex. The head of financial crime at CEX.IO, Mark Taylor, indicated that their firm is seeking to align with India’s regulatory expectations to ensure sustained access for users within the region.
As the cryptocurrency sector continues to evolve, Coinbase’s operational restart illustrates a growing recognition of the need for compliance and regulatory clarity, not just for exchanges but also for investors navigating this rapidly changing environment. The initiative by the FIU serves as a reminder of the ongoing efforts to foster a secure and regulated crypto marketplace in India.
