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Coinbase Registers with Indian Financial Watchdog to Offer Crypto Trading

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Coinbase Global, the U.S.-based cryptocurrency exchange, has registered with India’s Financial Intelligence Unit (FIU), paving the way for its entry into the Indian crypto market. This registration allows Coinbase to offer crypto trading services in compliance with India’s financial regulations. The company announced on Tuesday that it plans to launch initial retail services later this year, with further investments and product offerings to follow, though a specific timeline has not been disclosed.

India has seen a surge in cryptocurrency interest, particularly among young investors eager to explore digital assets as an alternative income source. Local crypto exchanges such as CoinDCX, Binance, and KuCoin already operate in the country.

“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations,” said John O’Loghlen, Coinbase’s regional managing director for Asia Pacific.

Under Indian law, virtual digital asset service providers, including crypto exchanges, must register with the FIU as reporting entities and adhere to the country’s anti-money laundering regulations. While India imposes a 30% tax on crypto trading gains—one of the highest globally—it has yet to establish comprehensive regulations for the sector.

The government’s stance on cryptocurrencies is under review, influenced by evolving global regulations and recent U.S. policy changes, particularly following Donald Trump’s presidential victory last year. A senior official indicated last month that India is closely monitoring international trends before finalizing its approach to crypto regulation.

Wall Street Reaches Record Highs Following Trump’s Presidential Election Win

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Wall Street surged to record levels on Wednesday as Donald Trump’s election victory propelled key U.S. market indexes higher. In a comeback that restores him to the White House four years after his first term ended, Trump’s win sparked optimism for tax cuts and deregulation, although market watchers noted potential challenges from possible tariff hikes, which could drive up inflation and the federal deficit.

Trump’s victory spurred a rally in “Trump trades,” with U.S. Treasury yields rising, the dollar strengthening, and Bitcoin hitting a record high. “The market response indicates that a Trump victory was not fully priced in, reflecting an extension of the ‘Trump trade’ that assumes Republicans will control both the House and Senate,” noted Candice Bangsund, a portfolio manager at Fiera Capital.

Domestic-focused stocks surged on the news, especially in the small-cap Russell 2000 index, which jumped 4.7% to a nearly three-year high. Small-cap stocks are expected to benefit from lower regulatory burdens, favorable tax policies, and minimal exposure to potential import tariffs. “Small caps are poised for a strong catch-up trade over the next 6-12 months,” said Sean Gallagher, Lazard’s global head of Small Cap Equity.

The market volatility index (VIX) dropped nearly five points, reaching its lowest level since September, as investors embraced the likelihood of a stable policy environment.

In individual market performance, the Dow Jones Industrial Average rose 1,345 points (3.19%) to reach 43,566.98, the S&P 500 climbed by 120.78 points (2.1%) to 5,903.45, and the Nasdaq Composite rose 436.48 points (2.37%) to 18,875.65. Financials led the S&P 500’s gains with a 5.5% surge, while the KBW Bank Index recorded its best day in four years. Energy, Industrials, and Consumer Discretionary sectors each gained around 3%, while rate-sensitive sectors like Real Estate and Utilities saw declines due to concerns that Trump’s policies might increase inflation, reducing the likelihood of future rate cuts—a significant driver of recent rallies.

The Federal Reserve is anticipated to reduce interest rates by 25 basis points on Thursday. However, with Trump’s policies expected to increase inflationary pressure, traders have begun lowering their expectations for additional rate cuts next year. Bangsund commented, “The sharp rise in Treasury yields may weigh on stock valuations.”

Stocks projected to benefit under Trump’s second term posted strong gains, including Trump Media & Technology Group, which rose 9.3%. Tesla also jumped 14%, likely influenced by Elon Musk’s vocal support for Trump’s campaign. Gains extended to cryptocurrency companies, energy stocks, and prison operators, while renewable energy stocks experienced declines.

Attention has now turned to whether Republicans will retain their newly gained majority in the Senate and potentially secure the House of Representatives, an outcome that could further shape the market’s trajectory over the next four years.

 

Britain Faces Warnings of a Tech Exodus Over Proposed Capital Gains Tax Plans

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British technology entrepreneurs and investors are sounding alarms over potential tax changes that could lead to a mass exodus of business founders from the U.K. The concern stems from reports that Finance Minister Rachel Reeves may raise capital gains tax (CGT) on share sales as part of a broader strategy to balance the nation’s budget, set to be announced on October 30.

The proposed CGT increase, which could bring the rate up to 39%, would significantly impact profits made from selling investments such as company shares. In addition, there are plans to reduce the business asset disposal relief (BADR), a scheme allowing entrepreneurs to pay a lower 10% tax on the sale of their businesses. These changes, while not officially confirmed, have caused widespread anxiety in the tech and business community.

More than 500 entrepreneurs signed an open letter to Reeves earlier this month, urging her to avoid the proposed tax hikes. The letter, published by The Entrepreneurs Network, emphasized that raising CGT or cutting BADR could severely weaken the U.K.’s startup ecosystem. Entrepreneurs argue that such a move would stifle the motivation to build businesses, reduce competitiveness, and ultimately push talent out of the country.

Some prominent figures in the tech space, including Giles Andrews of Zopa, Rishi Khosla of OakNorth, and Victor Riparbelli of Synthesia, warn that raising CGT would lead to a less favorable environment for business growth. The letter highlighted the risk of the U.K. having the second-highest CGT rate in Europe, which could deter innovation and entrepreneurship.

Adam French, partner at venture capital firm Antler, expressed concern about complacency within the U.K.’s tech ecosystem. He pointed out that cities like Paris and Berlin are becoming more competitive for talent, and the U.S. is also a prime destination for entrepreneurs seeking a more favorable tax environment. Venture capitalist Harry Stebbings, known for his podcast “The Twenty Minute VC,” added that raising CGT could lead to an “en masse” departure of entrepreneurs from the U.K.

Despite the opposition, some voices argue in favor of raising capital gains tax. The Institute for Public Policy Research, a center-left think tank, recently published a report in which millionaire business owners welcomed the idea of raising CGT to match the higher income tax rate. According to the report, the tax rate is not the primary factor driving investment decisions. Entrepreneurs tend to prioritize access to financing, market opportunities, and broader economic conditions over tax rates.

The upcoming budget announcement on October 30 will be closely watched by the tech community, with the potential for significant policy changes that could reshape the U.K.’s business landscape.