US-based cryptocurrency exchange Coinbase is in discussions with Indian regulators as it considers a return to the market after halting operations there in 2023.
Coinbase has engaged with India’s Financial Intelligence Unit (FIU) to explore its reentry to the market, TechCrunch reported on Feb. 13.
“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,” a spokesperson for Coinbase told Cointelegraph.
The news came amid Coinbase’s chief legal officer joining the US-India Business Council (USIBC) board, which aims to support long-term commercial partnerships and connect government to businesses.
Coinbase discontinued India operations in 2023
Coinbase’s potential return to India would come more than a year after the exchange discontinued operations there in September 2023.
As previously reported, Coinbase asked its local users to withdraw funds on Sept. 11, 2023, saying it would discontinue all Coinbase Retails services in India.
The US crypto exchange had faced issues with Indian regulators before. In April 2022, Coinbase stopped its United Payments Interface (UPI) services for Indian users just three days after launching its platform locally on April 7, 2022.
Coinbase’s UPI payment suspension was triggered by the National Payment Corporation of India, which said it did not recognize the legal standing of any crypto exchanges using the service of the Reserve Bank of India (RBI).
By the time of its launch in India, Coinbase’s venture capital arm had invested in two of India’s top crypto exchanges, including CoinSwitch Kuber and CoinDCX.
Coinbase chief legal officer joins USIBC
The report came amid Coinbase’s chief legal officer, Paul Grewal, joining the USIBC global board of directors on Feb. 12.
USIBC president ambassador Atul Keshap welcomed Grewal at the board, saying that his “leadership in the fintech and digital asset space” will be crucial as USIBC explores financial innovation between the US and India.
Source: USIBC
“I’m honored to join the USIBC Board to help strengthen the bridge between India and the US in shaping the future of finance,” Grewal said, adding:
“India has one of the largest and fastest-growing Web3 ecosystems in the world, with a booming developer community, pioneering startups, and bold institutional adoption. Since 2018, its share of global web3 developers has quadrupled to 12%, the highest growth among emerging markets.”
A Coinbase representative noted that the exchange is “constantly reviewing regulatory situations across the world” to ensure its business remains flexible to evolve with regulatory requirements.
Related: Indian crypto holders face 70% tax penalty on undisclosed gains
As previously mentioned, India led the world in terms of crypto adoption in 2024 despite the FIU restricting offshore crypto exchanges in late 2023.
The regulator has since softened its stance on foreign crypto trading platforms, registering KuCoin and Binance after collecting penalties in May 2024.
Local reports in September 2024 also suggested that the FIU was planning to approve two additional offshore exchanges.
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