Coinbase Faces Security Challenges and Regulatory Hurdles in India
Cryptocurrency exchange Coinbase has been grappling with regulatory hurdles and security issues in India. Users have lost millions in social engineering scams targeting the platform, while the company is reportedly in talks with Indian regulators about a potential return to the market.
Between December 2024 and January 2025, users suffered losses of at least $65 million due to social engineering scams targeting Coinbase. This highlights the ongoing security concerns in the crypto community.
Coinbase's history in India has been tumultuous. In 2022, it attempted to enter the market by integrating support for the Unified Payments Interface (UPI) system. However, it was forced to halt the service. Over a year later, in September 2023, Coinbase discontinued operations in India due to 'informal pressure' from the Reserve Bank of India. Since then, Coinbase has been engaging with multiple Indian regulatory bodies, including the Financial Intelligence Unit (FIU), to discuss a potential return.
Coinbase's return to India would mark over a year since it ceased operations. The company is reportedly in discussions with Indian regulators about a possible comeback, but it currently does not expect any concrete regulatory approval. Meanwhile, India is reportedly reevaluating its stance on cryptocurrency regulation, with a discussion paper on crypto policies currently under review.
Coinbase's future in India remains uncertain, with users continuing to face security challenges. The crypto community eagerly awaits regulatory clarity from India, which could pave the way for Coinbase's return and address the ongoing security concerns.
