US crypto exchange Coinbase poised for a comeback in India

US-based cryptocurrency exchange Coinbase announced on Tuesday it has registered with the Financial Intelligence Unit (FIU), marking its comeback to the country’s crypto market.

Coinbase, which is listed on the Nasdaq, said the move is part of its broader international expansion strategy, to roll out retail services later this year, followed by additional investments and products.

“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,” John O’Loghlen, regional managing director for APAC at Coinbase, said.

India has become a growing hub for blockchain development, with its share of global developers increasing from 3% in 2018 to 12% in 2023, according to the company. Coinbase said it views this as an opportunity to support local entrepreneurs by providing access to its platform and tools.

“India’s developer community and entrepreneurial energy are unmatched,” O’Loghlen said. “By expanding access to our trusted platform and tools such as Base, we aim to empower a new generation of builders to stay home, innovate locally, and scale globally.”

The company had launched its crypto trading service in India in April 2022, and allowed users to buy digital currencies through UPI system. However, only three days after launch, Coinbase halted its services without providing an explanation.

In May that year, Brian Armstrong, the company’s chief executive officer, said UPI was disabled on Coinbase “because of some informal pressure from the Reserve Bank of India,” TechCrunch reported. However, he also said that the company would relaunch with different payment methods.

Meanwhile, Coinbase has also strengthened its ties with India through Paul Grewal, Coinbase’s chief legal officer, who recently joined the board of the US-India Business Council.