Coinbase is in talks with the financial authorities of India to obtain the green light to re-enter the local market. After suspending operations in 2022, the platform is now seeking a new opportunity for expansion in the country.
Let’s see all the details in this article.
Coinbase exchange news: new negotiations with local authorities in India to obtain approval
Coinbase, one of the leading cryptocurrency exchanges globally, has initiated talks with India’s regulatory authorities to obtain the necessary approval for its return to the country.
After halting operations in 2022 following pressure from the Reserve Bank of India, the exchange is now looking to reestablish its presence in one of the most important and growing markets in the crypto sector.
According to Tech Crunch, Coinbase is currently in contact with the Financial Intelligence Unit (FIU) and other regulatory authorities to discuss the conditions of a possible return.
Although the company has stated its intention to comply with all regulatory requirements, no official plan for registration with the FIU has yet been announced.
In 2022, Coinbase had to halt operations in India just days after the launch due to what was described as “informal pressure” from the Reserve Bank of India.
In 2023, the exchange stopped accepting new registrations, while continuing to offer its wallet to Indian customers.
Despite the block, Coinbase has always expressed interest in strengthening its presence in India.
As we know, the Indian market of criptovalute is one of the most dynamic in the world, with millions of active investors despite a still uncertain regulatory environment.
An increasingly regulated market
India has recently intensified controls on cryptocurrency exchanges, imposing severe regulations to ensure greater transparency and tax compliance.
Binance, the largest exchange by trading volume, managed to register with the FIU after paying a fine of 2.2 million dollars for unauthorized operations.
Bybit has also followed a similar path, obtaining registration after paying a fine of 1 million dollars.
The potential return of Coinbase in India could be influenced by the experiences of these competitors, who have had to adapt to stringent regulations to continue operating.
The interest of Coinbase in the Indian market is understandable: with over 1.4 billion inhabitants and a growing adoption of cryptocurrencies, the country represents a huge growth opportunity.
However, the challenges are not lacking. The regulatory framework remains in evolution and local authorities are trying to balance technological innovation with the need for investor protection.
For Coinbase, the return to India could mean not only an expansion of its user base, but also a confirmation of its commitment to comply with local regulations and collaborate with financial institutions.
If the negotiations with the FIU are successful, the exchange could resume operations as early as the coming months, opening new prospects for the Indian crypto market.
In the meantime, the community remains in anticipation of further developments, aware that the future of crypto regulation in India will be crucial for the success of this initiative.
