YEREVAN (CoinChapter.com) — Coinbase is engaging with India’s Financial Intelligence Unit (FIU) to discuss a possible return after exiting the market in 2023. The FIU has started registering offshore crypto exchanges, allowing platforms like KuCoin and Binance to reenter after paying penalties in May 2024.
A Coinbase spokesperson reports that the company sees opportunities in India and aims to comply with regulations. However, there is no confirmation regarding FIU registration at this time. This development follows Coinbase’s chief legal officer, Paul Grewal, joining the US-India Business Council (USIBC) board, which focuses on commercial partnerships between the two countries.
Coinbase Suspended India Operations in 2023
Coinbase stopped its India operations in September 2023, instructing users to withdraw funds before discontinuing all retail services. This move followed earlier regulatory challenges in April 2022, when Coinbase launched United Payments Interface (UPI) services for Indian users on April 7 but suspended them three days later.
The National Payments Corporation of India (NPCI) clarified that it did not recognize the legal status of crypto exchanges using the Reserve Bank of India’s (RBI) payment infrastructure. Before its exit, Coinbase Ventures invested in CoinSwitch Kuber and CoinDCX, two of India’s leading crypto exchanges.
Paul Grewal Joins USIBC Board Amid Regulatory Talks
Coinbase’s chief legal officer, Paul Grewal, joined the US-India Business Council (USIBC) board of directors on Feb. 12.
USIBC president, Ambassador Atul Keshap, welcomed Grewal, highlighting his experience in the fintech and digital asset sector. Grewal acknowledged India’s expanding Web3 sector, stating:
“India has one of the largest and fastest-growing Web3 ecosystems, with a strong developer community, active startups, and institutional adoption. Since 2018, its share of global Web3 developers has quadrupled to 12%, the highest growth among emerging markets.”
A Coinbase representative said the company is reviewing global regulatory changes to ensure compliance with local laws.
FIU Registers More Crypto Exchanges as Regulations Shift
India led in crypto adoption in 2024, despite the FIU’s 2023 restrictions on offshore platforms. By May 2024, KuCoin and Binance were registered after meeting regulatory requirements.
In September 2024, local reports indicated that the FIU was also considering approving two more offshore crypto exchanges. Above all, Coinbase’s discussions with regulators suggest it is positioning itself for a return as India’s crypto regulations continue to evolve.