Coinbase is reportedly in discussions with India's Financial Intelligence Unit (FIU) as it seeks to re-enter the Indian market. This development follows the crypto exchange's withdrawal of support for the Unified Payments Interface (UPI) in April 2022, just days after its launch in the country.

The UPI is a mobile-based real-time payment system developed by the National Payments Corporation of India, designed to facilitate inter-bank transactions.

TechCrunch reported that Coinbase is engaging with various Indian authorities, including the FIU, to address regulatory requirements necessary for its return. A spokesperson for Coinbase expressed enthusiasm for the potential opportunities in India but noted that there were no immediate announcements regarding FIU registration.

This renewed interest from Coinbase coincides with a broader reassessment of crypto regulations in India. Ajay Seth, India’s economic affairs secretary, mentioned earlier this month that the government is reviewing its stance on crypto in light of global regulatory shifts.

He highlighted that multiple jurisdictions have altered their approach to cryptocurrency usage and acceptance, prompting a reevaluation of policies in India.

Meanwhile, some global exchanges have successfully established a presence in India. Recently, Bybit announced its registration with the FIU, having settled a penalty amounting to 92.7 million rupees (approximately $1 million).

As Coinbase navigates these discussions, the FIU has not yet responded to inquiries regarding the ongoing talks.