Coinbase Eyes Re-Entry into India After a Year-Long Absence

Coinbase is reportedly working on re-entering the Indian market over a year after ceasing operations.

According to a report from TechCrunch, the U.S. headquartered crypto exchange has initiated discussions with Indian authorities, including the Financial Intelligence Unit (FIU), to secure necessary approvals to resume operations.

Coinbase halted new user registrations in India in June 2023 and fully ceased operations by September of the same year due to compliance challenges. CEO Brian Armstrong previously claimed that the exchange faced informal pressure from the Reserve Bank of India, which ultimately led to its exit from the country.

India has been a significant market for cryptocurrency adoption despite previous regulatory challenges like high taxation on digital assets and restrictions on banking services for crypto exchanges.

Coinbase’s renewed push might be motivated by a perceived softening of regulatory stances towards cryptocurrency. The government’s recent actions, including a move to re-evaluate its crypto policies, suggest a shift towards structured regulation rather than outright bans.

However, the timeline for Coinbase’s relaunch depends on securing the required approvals, including an FIU license. The agency previously deemed several exchanges, including Binance and Kraken, to be operating “illegally” in India. While these exchanges have since resolved their compliance issues, Coinbase must navigate a similar process. Notably, Binance resumed operations in India in August 2024 after settling a $2.25 million fine for regulatory violations.

Meanwhile, in September 2024, it was reported that the FIU may grant two foreign-based crypto exchanges approval to operate in the country by March 2025. At the time, the agency was reportedly reviewing registration applications from four offshore cryptocurrency exchanges, all of which were undisclosed.

Interestingly, Paul Grewal, the chief legal officer of Coinbase, was announced as a new member of the board of directors of the US-India Business Council on February 12, 2025.

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