US-based cryptocurrency exchange Coinbase is discussing potential reentry into the Indian market with local regulators after ceasing operations in 2023.
Context of Previous Operations
In September 2023, Coinbase halted its operations in India, asking local users to withdraw funds. The exchange faced regulatory issues in April 2022 when India's National Payment Corporation stated that crypto exchanges using UPI services were not legally recognized. This occurred shortly after Coinbase's launch in India in April 2022, leading to service suspension.
Coinbase's New Moves
Coinbase is engaging with India's Financial Intelligence Unit to explore conditions for reentry. A company spokesperson indicated Coinbase's intent to comply with relevant regulations, though there are no announcements regarding FIU registration. Despite challenges, Indian crypto platforms continue to grow, and the regulator is softening its stance, registering platforms like KuCoin and Binance.
Leadership Role
Coinbase's chief legal officer Paul Grewal joined the USIBC board, signifying Coinbase's interest in strengthening financial innovation between the US and India. Grewal highlighted the importance of Coinbase's involvement in the rapidly growing Indian Web3 ecosystem, which has become one of the fastest-growing globally.
Coinbase's potential return to the Indian market reflects its commitment to adaptability and flexibility in a rapidly changing regulatory landscape. It also signifies the importance of the Indian market to major crypto companies.
