- Coinbase calls India the top crypto market in terms of digital asset usage.
- The crypto exchange relaunched its services in India, meeting regulatory standards.
- The crypto tax regulation in India has pushed traders from spot to futures markets.
Coinbase, one of the leading crypto exchanges, has highlighted India’s significant role in the digital asset space. According to the crypto exchange, no other country is using cryptocurrency more than India.
This underscores the importance of cryptocurrencies in the country despite regulatory uncertainty. Although crypto demand and adoption grow in India, the government has yet to consider crypto as a legal tender. Digital assets continue to remain in the regulatory grey zone.
Coinbase Bets on India, Calls It the Top Crypto Market
In an X post, crypto exchange Coinbase acknowledged the growing demand for cryptocurrencies in India. The exchange wrote, “No country uses crypto more than India.” This indicates that the exchange is increasingly confident about the Indian crypto market.
Coinbase’s optimistic approach comes amid India’s significant growth in crypto adoption. With a large investor base and a thriving developer community, India ranks among the world’s top crypto markets. According to the TRM Labs report, India was the “most resilient market,” with crypto activity dropping by just 6% year-over-year, compared to the 20% global average.
More interestingly, Coinbase has relaunched in India, which further reinforces the crypto exchange’s statement. Last month, the platform announced its decision to resume its operations in the country, allowing users to deposit and withdraw Indian rupees directly through their bank accounts. CEO Brian Armstrong stated,
“I believe we are now the first international player in India that has a local license and access to the local payment rails. We registered with the FIU, so we’ve got a local entity, local license, and I’m excited to have Coinbase live again in India.”
Although the company launched in India previously in 2022, the operations were suspended within days. After the launch, the National Payments Corporation of India (NPCI) stated that crypto exchanges couldn’t work with UPI support.
Now, Coinbase has returned to the market, meeting the regulatory requirements and providing a wide range of services. The exchange offers spot and perpetual futures trading for Indian users. Users can also buy and sell cryptocurrencies directly using INR.
How India’s Crypto Tax Rules are Shaping Trading?
Notably, India’s crypto regulations, especially concerning tax, have changed the way in which people trade digital assets. Traders have started moving away from spot trading since 2022, when the government launched 1% Tax Deducted at Source (TDS) on every crypto spot transaction.
As revealed by a community member on X, around 80% of the country’s crypto trading has now moved to the futures market. In the futures market, the 1% TDS is not applicable. However, this has made Indian crypto investors vulnerable as futures are riskier than simply buying and holding cryptocurrencies in the spot market.
This major change highlights how India’s crypto regulation is impacting the market. But at the same time, cryptocurrencies continue to gain popularity in the country, even in the face of regulations.
Related: India’s Directorate of Enforcement Cracks Down on a Money Laundering Syndicate
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
