Coinbase’s Efforts to Reenter the Indian Market
In a significant development, cryptocurrency exchange Coinbase (COIN) is currently in discussions with Indian authorities to obtain the necessary approvals to reestablish its operations in the country. This information was reported by Tech Crunch on Wednesday, highlighting Coinbase’s renewed interest in tapping into the Indian market.
According to sources familiar with the matter, Coinbase is engaging with various regulatory bodies, including the Financial Intelligence Unit (FIU) of India. A spokesperson for the U.S.-based company expressed enthusiasm about the potential opportunities within the Indian market, stating, “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 initially suspended its operations in India in 2022, shortly after launching its services, citing “informal pressure” from the Reserve Bank of India. In 2023, the exchange made the decision to halt new user registrations, although it continued to provide its Coinbase wallet to Indian citizens. The company also indicated its intention to explore avenues to strengthen its footprint in India moving forward.
Coinbase’s initiative reflects a broader trend among cryptocurrency exchanges looking to either establish or reestablish their presence in the world’s most populous nation. Notably, Binance, the largest exchange by trading volume, successfully registered with the FIU last year after settling a $2.2 million fine for operating without proper authorization. Similarly, Bybit, which ranks second on CoinGecko, also secured registration following a $1 million fine.
