US-based cryptocurrency exchange Coinbase is exploring a reentry into the Indian market after suspending operations there in 2023. The company has reportedly engaged with India’s Financial Intelligence Unit (FIU) as part of its efforts to return, according to a report from TechCrunch on February 13.
A Coinbase 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.”
Coinbase’s potential return coincides with the appointment of its chief legal officer, Paul Grewal, to the US-India Business Council (USIBC) board. The council promotes long-term commercial partnerships and helps connect businesses with government bodies in both countries.
Coinbase Halted Indian Operations in 2023
The exchange’s reentry plans come more than a year after it stopped operations in India in September 2023. At that time, Coinbase instructed local users to withdraw their funds by September 11, 2023, announcing it would discontinue all retail services in the country.
Coinbase previously faced regulatory challenges in India. In April 2022, the company suspended its United Payments Interface (UPI) services just three days after launching its platform in the country. This suspension was prompted by the National Payment Corporation of India, which stated that it did not recognize any crypto exchanges using services connected to the Reserve Bank of India (RBI).
Despite regulatory hurdles, Coinbase’s venture capital arm invested in two leading Indian crypto exchanges—CoinSwitch Kuber and CoinDCX—before its 2022 launch in the country.
Paul Grewal’s appointment to the USIBC board on February 12 is another significant development for Coinbase’s relationship with India. Atul Keshap, president of USIBC, welcomed Grewal, noting that his leadership in fintech and digital assets would be instrumental in driving financial innovation between the two countries.
Grewal expressed his excitement: “I’m honored to join the USIBC Board to help strengthen the bridge between India and the US in shaping the future of finance.” He also highlighted India’s rapid growth in the Web3 space, noting that its share of global Web3 developers has quadrupled to 12% since 2018—the highest growth rate among emerging markets.
A Coinbase representative added that the exchange is continuously reviewing global regulatory developments to ensure flexibility and compliance with evolving rules.
India’s Evolving Crypto Landscape
Despite FIU restrictions on offshore exchanges in late 2023, India led the world in crypto adoption in 2024. Since then, the FIU has softened its stance on foreign crypto platforms. In May 2024, it registered KuCoin and Binance after collecting penalties.
Additionally, local reports from September 2024 suggested that the FIU was preparing to approve two more offshore exchanges, signaling a more open regulatory environment for crypto businesses in India.
