Yerevan (CoinChapter.com) – Coinbase is in contact with India’s Financial Intelligence Unit (FIU) to discuss a possible return after exiting the market in 2023. The FIU has started registering offshore cryptocurrency exchanges, allowing platforms like KuCoin and Binance to re-enter the market after paying fines in May 2024.


A Coinbase spokesperson said the company sees opportunities in the Indian market and aims to comply with relevant regulations. However, there is no confirmation of FIU registration at this time. This development comes on the heels of Coinbase Chief Legal Officer Paul Grewal joining the board of directors of the US-India Business Council (USIBC), which focuses on business cooperation between the two countries.

Coinbase to suspend India operations until 2023
Coinbase ceased its operations in India in September 2023, instructing users to withdraw their funds before ceasing all retail services. The move came after regulatory challenges in April 2022, when Coinbase launched the Unified Payments Interface (UPI) service for Indian users on April 7, but suspended the service three days later.


The National Payments Corporation of India (NPCI) has clarified that it does not recognize the legal status of cryptocurrency exchanges that use the Reserve Bank of India (RBI) payment infrastructure. Prior to the exit, Coinbase Ventures had invested in CoinSwitch Kuber and CoinDCX, two of India’s leading cryptocurrency exchanges.

Paul Grewal joins USIBC board amid regulatory talks
Coinbase’s chief legal officer, Paul Grewal, joined the U.S.-India Business Council (USIBC) board of directors on Feb. 12.


Ambassador Atul Keshap, Chairman of USIBC, welcomed Grewal, highlighting his experience in the fintech and digital asset sectors. Acknowledging India’s expanding Web3 sector, Grewal said:

“India has one of the largest and fastest-growing Web3 ecosystems in the world, with a strong developer community, active startups, and institutional adoption. Its share of global Web3 developers has quadrupled to 12% since 2018, the highest growth among emerging markets.”
A Coinbase representative said the company is reviewing regulatory changes around the world to ensure compliance with local laws.

FIU to Register More Crypto Exchanges Amid Regulatory Changes
Despite the FIU imposing restrictions on offshore platforms in 2023, India leads the adoption of cryptocurrencies in 2024. By May 2024, KuCoin and Binance receive registrations after meeting regulatory requirements.


In September 2024, local reports said the FIU was also considering approving two other offshore cryptocurrency exchanges. Most importantly, Coinbase’s discussions with regulators indicate that it is preparing for a return to the market as cryptocurrency regulation in India continues to evolve.