Coinbase Makes a Comeback Bid in India

Coinbase, the popular US-based cryptocurrency exchange, is gearing up for a second attempt at conquering the Indian market. After pulling out two years ago, the company is reportedly in talks with potential partners to bring back UPI-linked services. Could this be the key to Coinbase’s success in India this time around?

Back in the Game

Sources close to the matter reveal that Coinbase officials will be visiting India later in March to push these partnership talks forward. The company is aiming to register with India’s Financial Intelligence Unit (FIU), a crucial step towards operating legally in the country. However, the FIU approval process can take several months, possibly stretching until the end of the year.

Facing Competition

India’s centralized exchange market is already quite crowded, with players like CoinSwitch and CoinDCX holding strong positions. To stand out, Coinbase will need to focus on local partnerships.

One key area is KYC verification, a crucial process that Coinbase overlooked in its initial foray into India. This time, the company seems to be learning from past mistakes.

Historical Hurdles

Coinbase’s last attempt in 2022 was short-lived. Their plans to integrate UPI for crypto purchases were quickly shut down by the National Payments Corporation of India (NPCI) just hours after launch. The RBI also reportedly exerted some pressure on the company to disable certain services in the country.

Eventually, Coinbase had to shut down its Indian operations altogether in September 2023.

A Evolving Landscape

Since then, the Indian crypto space has been navigating a complex regulatory landscape. The government is still working on clear guidelines for the sector, creating uncertainty for players like Coinbase.

A Balancing Act

While some organizations, like the Bharat Web3 Association, are advocating for UPI integration with crypto services, authorities remain cautious. Concerns about reckless investments and transaction anonymity make the decision a delicate balancing act.

What’s Next for Coinbase?

Will Coinbase finally crack the Indian market? Only time will tell. But their renewed interest and focus on building local partnerships suggest they are serious about making a lasting impact this time. Are you excited to see Coinbase back in India?