Coinbase Makes Grand Return to India, Reopening Signups After Two-Year Absence
Cryptocurrency exchange Coinbase has officially resumed user onboarding in India, marking a significant comeback after a two-year hiatus. The move signals a renewed commitment to the Indian market, which was previously exited due to regulatory challenges concerning payment infrastructure.
Key Takeaways
- Coinbase has reopened user registrations and crypto-to-crypto trading in India.
- A fiat on-ramp is planned for reintroduction in 2026.
- The exchange has engaged directly with India's Financial Intelligence Unit (FIU) for registration.
- Despite a challenging regulatory environment, Coinbase continues to invest in India.
A Strategic Relaunch
Coinbase's return to India follows a period of withdrawal initiated in 2023. The exchange had previously halted services and off-boarded millions of Indian users after encountering regulatory friction. This friction stemmed from an initial launch in 2022 that supported India's Unified Payments Interface (UPI), a feature that was quickly retracted after the network operator did not acknowledge Coinbase's use of the system.
According to John O’Loghlen, APAC director, Coinbase adopted a "clean slate" approach for its reentry. This involved direct engagement with the Financial Intelligence Unit (FIU), the government agency tasked with overseeing digital asset transactions. Coinbase successfully completed its FIU registration earlier this year and commenced an early-access program for users in October, before opening broadly.
Navigating the Indian Market
Currently, trading on the Coinbase platform in India is limited to crypto-to-crypto pairs. The reintroduction of a fiat on-ramp is anticipated in 2026, which will allow users to deposit and withdraw Indian Rupees directly.
India presents a complex operating landscape for cryptocurrency exchanges. Key challenges include a stringent 30% flat tax on crypto gains, a prohibition on offsetting trading losses, and a 1% transaction levy that can impact trading volumes. Despite these hurdles, Coinbase remains committed to its presence in the country.
Continued Investment and Expansion
Coinbase's commitment extends beyond user services. The company's venture arm has recently increased its investment in the local exchange CoinDCX, valuing it at $2.45 billion. Furthermore, Coinbase plans to expand its India-based workforce, which already exceeds 500 employees, to support both domestic and global product development.
This strategic re-engagement underscores Coinbase's long-term vision for the Indian cryptocurrency market, aiming to rebuild trust and offer services within the existing regulatory framework.