- Coinbase is negotiating with Indian regulators, including the Financial Intelligence Unit, to resume operations after its 2023 exit.
- The company’s Chief Legal Officer Paul Grewal has joined the US-India Business Council board, strengthening Indo-US fintech ties.
- India’s Web3 developer community has grown significantly, now representing 12% of global developers.
- Previous regulatory challenges led to Coinbase suspending UPI services within three days of launch in April 2022.
- India is currently reviewing its cryptocurrency stance amid global policy shifts and growing domestic crypto adoption.
Coinbase, the US-based cryptocurrency exchange, is making strategic moves to re-enter the Indian market, engaging in discussions with regulatory authorities including the Financial Intelligence Unit (FIU) under the finance ministry. This development comes more than a year after the platform ceased its operations in India due to regulatory hurdles.
The timing coincides with Paul Grewal, Coinbase’s Chief Legal Officer, joining the US-India Business Council board of directors. “I’m honoured to join the USIBC Board to help strengthen the bridge between India and the US in shaping the future of finance,” Grewal stated.
India’s cryptocurrency landscape has evolved significantly since Coinbase’s initial entry in April 2022, when it launched UPI support but had to suspend services within three days. The suspension came after the National Payments Corporation of India declined to acknowledge its operations, followed by what CEO Brian Armstrong described as “informal pressure” from the Reserve Bank of India.
The exchange’s renewed interest aligns with India’s shifting stance on digital assets. Economic Affairs Secretary Ajay Seth recently indicated the government’s willingness to re-examine its position on cryptocurrencies, marking a departure from earlier restrictive positions.
The Indian crypto ecosystem has shown remarkable growth, with the country’s share of global Web3 developers quadrupling to 12% since 2018. This growth persists despite stringent regulations, including a 30% capital gains tax and 1% TDS on transactions exceeding INR 10,000.
Domestic players are also entering the space, with Reliance Industries launching JioCoin, a blockchain-based reward token now integrated with their digital services. This follows Binance‘s successful return to India after registering with the FIU last August.
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