US-based cryptocurrency exchange Coinbase is in discussions with Indian regulators, considering a return to the market after halting its operations there in 2023.

Coinbase has engaged with India's Financial Intelligence Unit (FIU) to explore reentering the country.

US-based cryptocurrency exchange Coinbase is reportedly considering a return to the Indian market after halting its operations there in 2023.

According to TechCrunch, Coinbase has engaged with India’s Financial Intelligence Unit (FIU) to explore reentering the country. A Coinbase spokesperson confirmed the report, adding that the company is excited about India's market opportunities and plans to comply with regulatory requirements. However, they clarified that there are no updates on its FIU registration at the moment.

This news comes after Coinbase’s chief legal officer, Paul Grewal, joined the US-India Business Council (USIBC) board. The USIBC works to strengthen commercial ties between the US and India, and Grewal’s appointment highlights Coinbase’s focus on the Indian market.

Coinbase stopped operations in India in September 2023, asking local users to withdraw funds. This came after the exchange faced regulatory challenges, including a suspension of its UPI payment services just three days after launching its platform there in April 2022.

The National Payment Corporation of India (NPCI) questioned the legal standing of crypto exchanges using UPI, which is operated by the Reserve Bank of India (RBI).

Despite the setbacks, Coinbase’s venture capital arm invested in top Indian exchanges like CoinSwitch Kuber and CoinDCX before its exit.

Coinbase’s return would come as India's Web3 ecosystem continues to grow rapidly, with a thriving developer community and institutional interest. The country has also seen rising crypto adoption, despite regulatory hurdles, including penalties on offshore exchanges like KuCoin and Binance.