Key Takeaways
- Coinbase is in talks with Indian regulators for reentry.
- The exchange exited India in 2023 due to regulatory issues.
- India has eased restrictions on offshore Bitcoin platforms.
U.S.-based Bitcoin exchange Coinbase is exploring a return to India, engaging with the country’s Financial Intelligence Unit (FIU) as regulatory conditions improve.
According to a report from TechCrunch on Feb. 13, Coinbase is assessing its compliance options but has not yet confirmed plans for FIU registration.
Official statement
A company spokesperson told Cointelegraph:
Coinbase is excited by the opportunities in the Indian market and intends to comply with applicable regulatory requirements, but we have nothing to announce regarding a FIU registration at this time.
Regulatory environment changes
The discussions follow a shift in the FIU’s stance on offshore exchanges, with Binance and KuCoin securing registrations in mid-2024 after paying penalties.
Local reports from September 2024 also suggested that two more offshore platforms were being considered for approval.
Previous market exit
Coinbase previously withdrew from India in September 2023, instructing users to withdraw funds before shutting down local retail services.
The exchange had struggled with regulatory roadblocks since its brief platform launch in April 2022, when the National Payment Corporation of India halted Coinbase’s United Payments Interface (UPI) services.
Ongoing investment presence
Despite its exit, Coinbase’s venture capital arm has maintained investments in Indian Bitcoin firms, including CoinSwitch Kuber and CoinDCX.
Strategic leadership moves
Coinbase’s potential return aligns with Chief Legal Officer Paul Grewal joining the U.S.-India Business Council (USIBC) global board of directors on Feb. 12.
USIBC President Atul Keshap praised Grewal’s fintech expertise, highlighting his role in fostering financial collaboration between the two countries.
Market outlook
Grewal, pointing to its booming developer sector and institutional adoption, noted:
India has one of the largest and fastest-growing Web3 ecosystems in the world.
