Coinbase Re-enters Indian Market with Cautious Strategy

Coinbase US19260Q1076

The cryptocurrency exchange Coinbase has officially resumed operations in India, marking its second attempt to establish a presence in one of the world's most populous markets. This move comes after a two-year hiatus prompted by earlier regulatory challenges. As CEO Brian Armstrong continues to drive global expansion, investors are evaluating whether the company's revised approach can successfully navigate past obstacles.

A central development enabling this return is Coinbase's successful registration with India's Financial Intelligence Unit (FIU). Clearing this compliance hurdle was essential, as difficulties in this area led to the failure of its initial market entry in 2022. The company confirmed the platform's reopening for Indian users on Monday.

This time, management is proceeding with greater caution. The current service offering is limited to crypto-to-crypto transactions. The full integration of fiat currency services—specifically deposits and withdrawals in Indian Rupees (INR)—is not scheduled until 2026. This staggered strategy is designed to prevent conflicts with local authorities and payment processors. Despite its stringent regulatory landscape, India is widely considered a pivotal global market for grassroots cryptocurrency adoption.

Supportive Market Conditions and Venture Activity

The strategic relaunch coincides with a favorable shift in the broader digital asset environment. Bitcoin has reclaimed the $92,000 price level, boosting sentiment across the sector. Coinbase's own shares (COIN) are trading at €234.70, showing a modest gain of 0.64%.

Concurrently, the firm's investment arm remains active. Coinbase Ventures acted as a lead participant in a $5 million funding round for Pye Finance, a project focused on developing liquidity solutions within the Solana ecosystem.

Divergent Institutional Views and Technical Pressure

Despite the positive operational news, the technical chart picture presents a more mixed outlook. The share price continues to trade below the key 200-day moving average of €248.12, suggesting a persisting medium-term downtrend. Institutional investors also appear divided on the stock's direction. Major pension fund CalPERS significantly increased its holdings during the second quarter, while asset manager Ossiam reduced its stake by nearly one-third.

Market analysts, on average, maintain a bullish stance, upholding their buy recommendations. Immediate attention now turns to the upcoming US Federal Reserve interest rate decision on Wednesday, December 10th. The market widely anticipates a rate cut, which could provide the necessary catalyst to overcome technical resistance levels.

Ultimately, the long-term success of Coinbase's Asian strategy will heavily depend on the seamless implementation of its planned rupee transaction services in 2026.