Coinbase in Talks for Indian Market Return After 2023 Exit

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The cryptocurrency exchange Coinbase, located in the United States, is engaging in talks with Indian regulators as it contemplates re-entering the market after suspending operations in 2023.

Indian Regulatory Ecosystem is Changing

According to a recent TechCrunch report, the exchange has entered into talks with India’s Financial Intelligence Unit (FIU). Although no formal confirmation of FIU registration has been granted, a business representative expressed enthusiasm about the Indian market, stating that Coinbase is “excited by the opportunities” and intends to obey local regulations.

This comes as the Indian regulatory climate for Bitcoin is shifting. The FIU imposed prohibitions on offshore cryptocurrency exchanges in late 2023, but recent developments indicate that this stance is shifting. After imposing penalties in May 2024, the regulatory body has eased its position regarding international crypto trading platforms, registering KuCoin and Binance.

Coinbase’s Prior Experience in India

Coinbase’s initial presence in India was brief. The exchange launched operations in April 2022 but immediately fell into regulatory issues when the National Payment Corporation of India (NPCI) refused to recognize the use of the Unified Payments Interface (UPI) for cryptocurrency transactions. Coinbase stopped offering UPI services just three days after they were launched. By September 2023, the business had abandoned the Indian market, instructing local customers to withdraw their money.

Also read: Is Coinbase Safe? Everything You Need To Know

Despite the losses, the exchange made considerable investments in India’s cryptocurrency ecosystem, including offering backing for two of the country’s largest exchanges, CoinSwitch Kuber and CoinDCX. This financial impact, combined with the country’s growing Web3 usage, may explain its renewed interest in the region.

Strategic Moves Strengthen Ties with India

The comeback of Coinbase aligns with strategic initiatives that can improve US-India fintech relations. Coinbase’s Chief Legal Officer, Paul Grewal, has recently been appointed to the Board of Directors of the United States-India Business Council.

This appointment emphasizes the increasing interest in the web3 world, noting that the country now accounts for 12% of the global Web3 development community.

Also read: Top Coinbase Competitors: Best Exchanges To Consider

The President of USIBC, Atul Keshap, praised Grewal’s appointment. He said his knowledge of fintech and digital assets is critical to determining the future of financial innovation.

If the exchange successfully navigates India’s regulatory framework, its return might bring about a wave of improvements. Increased market competition means more possibilities for Indian traders and investors.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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