Coinbase Registers With FIU To Launch Crypto Trading Services

US based crypto exchange Coinbase has reportedly registered with India’s Financial Intelligence Unit (FIU) to offer crypto trading services in the country.

A Reuters report said that the company plans to roll out its initial retail services later this year, followed by more investments and products. However, it has not shared a specific timeline on the same.

“India is one of the most exciting markets today, and we are proud to deepen our investment here while staying fully compliant with local regulations,” John O’Loghlen, Coinbase’s regional MD for Asia Pacific, was quoted as saying in the report.

This is nearly a month after reports surfaced that the crypto giant might be re-entering into India. Moreover, Paul Grewal, chief legal officer at Coinbase, also joined the board of directors of US-India Business Council last month. 

Notably, to operate in India, crypto exchanges have to register with the FIU as reporting entities and follow anti-money laundering regulations. 

Most recently, for not complying with the regulation, FIU-IND imposed a monetary penalty of INR 9.3 Cr on crypto platform Bybit.

However, the platform resumed its operations in India shortly after paying the penalty and registering with FIU. It was not much after the company faced one of the biggest crypto heists globally, amounting to $1.5 Bn.

In August last year, crypto major Binance also resumed operations in India after registering with FIU following a seven-month regulatory halt.

Notably, Coinbase had entered the Indian markets in 2022, but had to suspend the service just three days later after the National Payments Corporation of India (NPCI), which oversees UPI, refused to acknowledge its operations. At the time, Mobikwik wallet used to partner with crypto platforms, however, at the time Mobikwik too was pulling back its support to the crypto platforms. 

At the time, Coinbase chief Brian Armstrong had said that the company faced informal pressure from the Reserve Bank of India, which led to the trading halt. 

Notably, development comes as India reviews its cryptocurrency stance. Economic affairs secretary Ajay Seth recently said that the government is re-examining its position on digital assets amid global policy shifts.