Coinbase Eyes India Return Amidst Regulatory Talks

Crypto exchange Coinbase (COIN) is reportedly in talks with Indian authorities to secure approval for a return to the country, two years after suspending its operations. The exchange is said to be engaging with regulators, including the Financial Intelligence Unit (FIU), according to a report by Tech Crunch.

Coinbase's interest in the Indian market is evident, as the company has expressed its excitement about the opportunities it presents. However, a spokesperson for the U.S. company has stated that there is no announcement regarding a FIU registration at this time. The exchange had previously suspended operations in India due to regulatory challenges from the Reserve Bank of India. In 2023, Coinbase stopped allowing user registrations but continued to offer its Coinbase wallet to Indian citizens and explored ways to strengthen its presence in the country.

Coinbase is not alone in its pursuit of the Indian market. Other crypto exchanges, such as Binance and Bybit, have also registered with the FIU after paying fines for operating without authorization. Binance, the largest exchange by volume traded, registered with the FIU last year after paying a $2.2 million fine, while Bybit, ranked No. 2 on CoinGecko, registered after paying a $1 million fine.

The Indian market presents significant opportunities for crypto exchanges, given its large and growing population. As the regulatory environment evolves, exchanges like Coinbase are exploring ways to comply with applicable requirements and establish or re-establish a presence in the country. The crypto industry's interest in India highlights the potential for growth and innovation in the region.