Coinbase is making another attempt to establish itself in India after securing registration with the country’s Financial Intelligence Unit (FIU). The crypto exchange announced on March 11 that it had received approval to launch operations in India, with Chief Legal Officer Paul Grewal calling it a "major step" for fostering innovation and onchain businesses in the country.

While Coinbase has not yet set a date for the relaunch, its blog post confirmed plans to reintroduce cryptocurrency trading services. This move could significantly benefit Indian traders and developers, who would gain access to Coinbase’s suite of tools, including its Base network. John O’Loghlen, the company’s APAC regional managing director, emphasized the opportunity for India’s blockchain ecosystem to flourish with the platform’s return.

Coinbase’s previous attempt to operate in India in 2022 lasted only a few days before regulatory pressure from the country’s central bank forced an abrupt halt. At the time, Coinbase had expressed its commitment to working with authorities to meet local compliance standards.

India has maintained a cautious stance on cryptocurrency, with the FIU imposing bans on multiple exchanges in recent years. Legal experts suggest that some lawmakers associate crypto with gambling and illicit activities, leading to restrictive policies such as heavy taxation. However, with global crypto adoption accelerating, India faces mounting pressure to keep pace.

In February, Economic Affairs Secretary Ajay Seth acknowledged that digital assets transcend borders, signaling a potential shift in India’s regulatory approach. Despite its tough stance, India leads the Central, Southern Asia, and Oceania region in crypto adoption, particularly in retail and decentralized finance, according to a 2024 Chainalysis report.

With its FIU registration in place, Coinbase’s return could either ignite a new wave of crypto growth in India or face yet another regulatory blockade.