Coinbase Reboots in India: FIU Nod, Trading Pause, and Possible CoinDCX Buyout

Coinbase, a leading centralized cryptocurrency exchange founded in 2012 by Brian Armstrong, has grown into one of the most trusted platforms for buying, selling, and storing digital assets. It serves over 245,000 ecosystem partners across 100+ countries, with more than $425 billion in assets on its platform.

Headquartered in the U.S. (though now remote-first), Coinbase, has made a notable comeback in India after a period of regulatory turbulence. Here's a breakdown of its current status and activities:

Re-entry into the Indian Market

• Coinbase has officially registered with India’s Financial Intelligence Unit (FIU), allowing it to operate under local compliance frameworks.
• This marks a strategic shift from its earlier exit in 2022, when it halted services due to issues with UPI integration and regulatory uncertainty.

What’s Now Available

• Indian users can reportedly send, receive, convert, and store supported cryptocurrencies on Coinbase.
• Full trading services (buy/sell) are expected to roll out later this year, following further regulatory alignment.

Security & Compliance

• Coinbase emphasizes high security standards including 2FA, cold storage, and insurance protection.
• Its FIU registration ensures anti-money laundering (AML) compliance, making it a safer option compared to unregulated platforms.

Limitations & Challenges

Trading is still restricted for Indian users as of now—no direct buying/selling of crypto.

Transaction fees on Coinbase tend to be higher than local exchanges like CoinDCX or Binance India.

Strategic Vision

Coinbase sees India as a key hub for onchain innovation, citing the country’s growing developer base and startup ecosystem.

The company aims to empower local builders through tools like Base, its Ethereum Layer 2 platform.

Crypto Exchange Comparison

Feature	Coinbase 🇺🇸	CoinDCX 🇮🇳	Binance India 🌏
Founded	2012 (US)	2018 (India)	2017 (Global)
Regulatory Status	FIU-registered in India	FIU-registered	Operates via WazirX (unclear FIU status)
Trading Access (India)	Limited (no buy/sell yet)	Full access	Full access
Fees	High (up to 3.99%)	Low (0.04%–0.1%)	Very Low (0.015%–0.1%)
Security	2FA, cold storage	BitGo-backed, recently hacked	2FA, SSL, cold storage
Mobile App	iOS & Android	iOS & Android	iOS & Android
Referral Bonus	₹750 in BTC	₹100 in ETH	Varies (BNB discounts)
User Experience	Global UX, beginner-friendly	Localized UX, beginner-friendly	Advanced UX, pro tools
Recent News	Re-entered India, may acquire CoinDCX	Recovering from $44M hack	Stable, high liquidity

Key Insights

• Coinbase is re-entering India with FIU registration and may acquire CoinDCX to accelerate local presence. Talks are ongoing but not confirmed. 
• CoinDCX offers low-cost trading and full access but is recovering from a major security breach. CoinDCX recently suffered a $44M hack.
• Binance India remains dominant for advanced traders, though its regulatory clarity is still in question.