Coinbase to Re-enter the Indian Market Since Its 2023 Exit

One of the world’s leading crypto exchanges, Coinbase, plans to re-enter the Indian market after it stopped operations in 2023. The latest development marks a significant turnaround for the exchange.

According to sources familiar with the matter, who requested anonymity due to the ongoing and private nature of the discussions, Coinbase is currently in talks with various Indian authorities, including the Financial Intelligence Unit (FIU), a government agency responsible for monitoring financial transactions.

Coinbase to Return to India

The Indian authorities noted that Coinbase’s potential relaunch timeline hinges on how quickly it can secure the required approvals, including a license to operate from the FIU. The agency had previously determined that several exchanges, including Kraken and Binance, were operating illegally in the country.

The announcement comes as Coinbase’s chief legal officer, Paul Grewal, joined the board of directors of the U.S.-India Business Council, part of the U.S. Chamber of Commerce, to help strengthen the partnership between India and the United States in shaping the future of finance.

“I’m honored to join the USIBC Board to help strengthen the bridge between India and the U.S. in shaping the future of finance. India has one of the largest and fastest-growing Web3 ecosystems in the world, with a booming developer community, pioneering startups, and bold institutional adoption,” he said.

Prior to the latest announcement, the US crypto exchange had previously encountered challenges with Indian regulators. In April 2022, three days after launching its platform locally on April 7, Coinbase halted its United Payments Interface (UPI) services for Indian users.

Coinbase’s suspension of UPI payments was prompted by the National Payments Corporation of India (NPCI), which stated that it did not recognize the legal standing of any crypto exchanges utilizing the Reserve Bank of India (RBI) services.

At the time of its India launch, Coinbase’s venture capital arm had invested in two of the country’s leading crypto exchanges, CoinSwitch Kuber and CoinDCX.

Coinbase Halts Operations In India

Following the dispute, on September 11, 2023, the company informed its Indian users to withdraw their funds, announcing the discontinuation of all Coinbase Retail services in the country.

Despite the battle between India and Coinbase exchange and the FIU’s restriction on offshore crypto exchanges in late 2023, the country emerged as a global leader in crypto adoption in 2024.