Coinbase Reopens In India After Two-Year Hiatus
After a pause of more than two years, Coinbase has reopened its app for registration in India, allowing users to conduct crypto-to-crypto trades.
The move comes after the U.S.-based exchange registered with India’s Financial Intelligence Unit (FIU) earlier this year, ensuring compliance with the country’s anti-money laundering regulations.
Why Coinbase Left India And Why It’s Returning
Coinbase initially launched in India in 2022 but faced immediate challenges when the National Payments Corporation of India (NPCI) refused to recognise its operations on the Unified Payments Interface (UPI) network.
Within days, the exchange had to suspend UPI support and later, in 2023, ceased all local operations, instructing millions of users to close their accounts.
John O’Loghlen, Coinbase’s director for Asia-Pacific, said,
“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats, have a clean slate here. As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so you know it wasn’t without some hesitation.”
The decision to return followed extensive engagement with the FIU, allowing Coinbase to meet local regulatory standards.
The exchange quietly resumed limited onboarding in October under an early-access programme and has now opened full registration to all Indian users.
Fiat On-Ramp Plans For 2026
At India Blockchain Week, O’Loghlen revealed plans to introduce a fiat on-ramp in 2026, which would enable users to deposit Indian rupees directly into the app and purchase cryptocurrency.
“We want to be known as that trusted exchange, ensure that your funds are safe with us. We’re not going to get out to the masses if you can’t have a really nice UI, a trusted experience that allows you on board in a matter of minutes in the same way that you do with Zepto or Flipkart or any other super app in India.”
Navigating India’s Tax And Regulatory Landscape
Coinbase returns at a time when India imposes strict taxation on digital assets.
Crypto earnings face a 30% tax without loss offset, alongside a 1% deduction on every transaction.
These rules have reportedly discouraged frequent trading and complicated operations for crypto exchanges.
Since the levy was introduced in 2022–23, the Indian government has collected around $818 million (₹700 crore) in crypto taxes, including $323 million (₹269.09 crore) in the first year and $525 million (₹437.43 crore) in 2023–24.
Despite these hurdles, Coinbase remains optimistic.
The firm’s venture arm increased its investment in local exchange CoinDCX, which is now valued at $2.45 billion following its funding round.
Analysts view this partnership as a strategic route for Coinbase to strengthen its presence in India, rather than attempting to rebuild UPI connectivity independently.
Expanding Presence And Workforce In India
Coinbase is also planning to expand its India team, currently exceeding 500 employees, by hiring for positions focused on both domestic and international operations.
The company sees India as a key hub for growth across South Asia and the Middle East, positioning itself as a trusted platform amid a challenging regulatory environment.
India Remains A Key Digital Asset Market
India continues to lead global crypto adoption, ranking first worldwide for the third consecutive year, ahead of the U.S., Pakistan, the Philippines, and Brazil, according to TRM Labs.
While other internet and AI firms, such as OpenAI, have rapidly grown in the market, crypto platforms like Coinbase face unique obstacles due to strict regulations and taxation.
By reopening its app and planning a fiat on-ramp, Coinbase aims to reclaim a foothold in one of the world’s largest digital asset markets while building long-term trust with Indian users.
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