Coinbase Returns to India As It Bags FIU Approval

Coinbase, the American cryptocurrency exchange has taken a notable step geared towards staging a major comeback in India. The exchange has secured registration with the country’s Financial Intelligence Unit (FIU).

Regulatory Compliance Unlocks Market Potential

In an update on X, Paul Grewal, Coinbase’s Chief Legal Officer, confirmed the development to members of the broader crypto community. According to Grewal, the company’s FIU registration in India is critical to supporting the country’s local entrepreneurs.

Notably, local businesses can leverage the Coinbase platform to build global on-chain businesses and grow faster. This would also benefit Coinbase, given the large market in India where on-chain innovation can thrive.

John O’Loghlen, Regional Managing Director for APAC at Coinbase, believes crypto can positively change many things in India. For instance, the current scenario is that young entrepreneurs and developers look abroad to build global companies.

“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations,” O’Loghlen stated.

Coinbase Journey in India’s Strict Crypto Regulatory Space

Grewal emphasized that securing the FIU approval is a “major step towards empowering Indian entrepreneurs to build, innovate, and scale global on-chain businesses— all from home.” This highlights that Coinbase can now serve Indian users by supporting the broader Web3 and blockchain ecosystem.

Interestingly, Coinbase exited India in 2022 due to regulatory pressure. The Indian crypto space became more difficult to operate in 2023 when the regulatory authority tightened rules on digital assets.

This included adding virtual assets under the Prevention of Money Laundering Act. The move required crypto platforms, including exchanges, to register with the FIU. Hence, Coinbase’s re-entry into the Indian crypto space signals a willingness to comply with the country’s rules.

Coinbase’s Broader Expansion Strategy

The development aligns with the broader trend among crypto exchanges like Binance, which has resumed operations in India. Their resumption also came after meeting new compliance requirements spelled out by the regulatory body.

Beyond re-entry into the Indian market, Coinbase recently revealed plans to commence 24/7 futures trading. The Coinbase derivatives offering will allow U.S. users to trade anytime and control their investments around the clock.