United States-based publicly traded cryptocurrency exchange Coinbase is working to return to the Indian market.
Anonymous sources cited by TechCrunch claim that Coinbase is already collaborating with multiple Indian financial authorities in preparation for a return to the country. These authorities reportedly include India’s Financial Intelligence Unit (FIU), a regulator tasked with scrutinizing financial transactions.
The details
Coinbase’s efforts to return to India follow the country’s past heavy repression and ostracization of cryptocurrencies. Even as recently as November 2024—just a few months ago—Indian regulators were reported to be considering banning free cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), advocating for state-controlled Central Bank Digital Currencies (CBDCs) instead.
Despite that, world-leading crypto exchange Binance resumed operations in India last summer after registering with the FIU. Now, Coinbase is looking to compete in the market after its last attempt at establishing operations in the country failed.
Back in 2022, Coinbase launched in India and introduced support for the United Payments Interface used in the country. Then the firm was forced to suspend its operations in the nation just three days later because the National Payments Corporation refused to recognize the company.
Still, things are changing quite quickly and suddenly in India. As reported in September 2024, India continues to lead the way in the global adoption of cryptocurrencies as it has earned the title two years in a row.
Local authorities are also clearly cooperating with cryptocurrency exchange operators, further cementing the idea that things are different now. At the end of September, Indian authorities, in collaboration with Binance were able to dismantle a gaming app scam that defrauded users of over $47 million. An Indian Enforcement Directorate spokesperson said at the time:
“Public-private collaborations are crucial in tackling complex financial crimes. Binance’s specialized investigation team is a great example of how private-sector firms can work closely with law enforcement. In this case, they provided us with analytical support that contributed to the investigation.”
