According to a Feb. 13 TechCrunch report, the US-based cryptocurrency exchange has engaged with India’s Financial Intelligence Unit (FIU) to explore compliance with local regulations.
“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 coincides with Coinbase Chief Legal Officer Paul Grewal joining the US-India Business Council (USIBC) board on February 12. Grewal emphasized India’s growing Web3 ecosystem, noting that the country has one of the largest and fastest-growing developer communities globally, with its share of global Web3 developers quadrupling to 12% since 2018.
Coinbase initially launched in India in April 2022 but suspended its United Payments Interface (UPI) services just three days later after the National Payment Corporation of India refused to recognize crypto exchanges using the Reserve Bank of India’s payment system. The exchange fully discontinued retail operations in India in September 2023, asking users to withdraw their funds.
The FIU has recently softened its stance on offshore exchanges, registering KuCoin and Binance in May 2024 after collecting penalties. Local reports in September 2024 also suggested the FIU was planning to approve two additional offshore platforms.
Coinbase’s potential return signals growing opportunities in India’s crypto market, driven by regulatory clarity and increasing institutional adoption.
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