Coinbase Gains FIU Approval for Indian Market Re-entry: SEC Drops Lawsuit

Coinbase (COIN) has made progress in returning to India by securing registration with the Financial Intelligence Unit (FIU), the company announced today (Tuesday). This registration enables Coinbase to offer its trading services in the Indian market, Coindesk reported.

Additionally, the US Securities and Exchange Commission (SEC) has dropped its lawsuit against Coinbase, signalling a shift in its stance on cryptocurrency industry regulation.

Coinbase Faces Regulatory Challenges

Coinbase had been active in India several years ago but faced regulatory challenges that led it to pull back from the country. In 2022, the company resumed operations but later suspended them due to "informal pressure" from the Reserve Bank of India. The following year, it stopped accepting new user registrations while still providing wallet services to Indian citizens.

Launching Retail Services in India

"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," said John O'Loghlen, Regional Managing Director for APAC at Coinbase.

This recent FIU registration marks a new phase in Coinbase's plans for India. Earlier in 2025, Finance Magnates reported that Coinbase had been in talks with regulators, including the FIU, about a possible re-entry into the market. The company now intends to launch retail services in India later this year and explore other products while increasing its investments in the region.

SEC Ends Coinbase Lawsuit

The SEC's decision to drop its lawsuit against Coinbase follows years of regulatory uncertainty in the crypto sector. Filed in 2023, the lawsuit accused Coinbase of facilitating the trade of unregistered securities and failing to comply with regulations. However, Coinbase argued that crypto-assets do not meet the legal definition of securities.

Acting Chairman Mark T. Uyeda noted that the SEC's past approach focused on enforcement actions rather than public engagement, emphasizing the need for clearer and more transparent crypto policy. The dismissal aligns with broader shifts in SEC strategy, especially under the potential leadership of Paul Atkins, a crypto-friendly figure.