Coinbase expands to India with FIU registration, confirming plans to launch retail trading services later this year.
This is a major event for the crypto world because India has one of the largest crypto user bases. With an estimated 94 million crypto users, India has ranked #1 in global adoption. Coinbase entering this market will affect investor confidence, trading volumes, competition among exchanges, regulations, and even institutional interest.
Source | X @coinbase
Impact on Indian Investor Confidence
Indian investors have long faced uncertainty due to unclear government rules on crypto. Many have continued trading, but others hesitated due to fear of sudden bans. Now, Coinbase’s official approval by the FIU sends a message that crypto is here to stay. A trusted global exchange operating legally in India could encourage more people to trade, knowing they are using a secure platform.
Another reason this matters is that Indian investors often struggle with unreliable platforms. Some local exchanges have faced security issues, and bank restrictions made depositing money difficult. Coinbase, with its strong security and global reputation, may attract many users who previously avoided crypto or used offshore exchanges.
Increase in Trading Volumes and Liquidity
Bringing millions of Indian traders into a regulated exchange will likely increase crypto trading worldwide. When Coinbase announced its India entry, Bitcoin (BTC) and Ethereum (ETH) trading volumes spiked. On Indian trading pairs, BTC/INR rose 20%, and ETH/INR jumped 18%. This suggests that traders expect a wave of new buyers to enter the market. More trading means better liquidity, which can lower price fluctuations and improve market stability.
This is also great news for American-made cryptocurrencies. Coins that are primarily traded on US exchanges might see more interest from Indian investors, pushing up their demand. USD-backed stablecoins could also benefit since many Indian traders use stablecoins to protect their holdings from inflation.
Competition Among Exchanges
Coinbase’s entry will increase competition in India’s crypto market. Established Indian exchanges like WazirX, CoinDCX, and ZebPay now have to compete with a platform that offers more trading pairs and stronger security. Some Indian exchanges may lower fees or introduce new features to retain users. Global exchanges like Binance, which have already struggled with Indian regulations, will also need to adjust their strategies.
For traders, this competition is a good thing. More exchanges competing for users means better services, lower costs, and a stronger overall market. However, some smaller exchanges may struggle to keep up, leading to possible mergers or closures.
Regulatory Challenges and Opportunities
Despite this progress, Coinbase still faces challenges in India. Crypto taxes are high, profits are taxed at 30%, and a 1% tax is deducted on every trade. This discourages high-volume trading and could slow down adoption. Banking restrictions are another issue. In 2022, Coinbase tried to use India’s UPI payment system but was blocked by regulators. Ensuring smooth INR deposits and withdrawals will be crucial.
However, Coinbase’s compliance with Indian laws may help shape better regulations in the future. If lawmakers see that a major exchange can operate within legal rules, they may reconsider harsh policies, making crypto more accessible for everyone.
Institutional Interest in Crypto
Coinbase’s move into India might also encourage big investors to take crypto more seriously. Institutions prefer to invest where rules are clear. Seeing a US company succeed in India could convince banks, hedge funds, and fintech firms that crypto is a safe and growing industry. In the long run, this could bring more mainstream investment into the market.
Conclusion
Coinbase launching in India is a big deal for the crypto world. It gives Indian investors more confidence, increases global trading volumes, forces exchanges to improve, and may even lead to better crypto regulations. This move also has a positive effect on centralized exchanges, particularly Millionero, which is already popular among Indian users. A growing market and rising crypto interest mean more opportunities for traders on secure and user-friendly platforms like ours.
As always, remember to Do Your Own Research (DYOR) before making any investment decisions. You can explore more insights on blog.millionero.com. When you’re ready, come trade spot and perpetual futures on Millionero!