Key Highlights
- Coinbase has officially returned to India after a two-year absence, immediately offering crypto-to-crypto trading.
- The re-entry was made possible by successfully completing registration with the Financial Intelligence Unit (FIU) earlier this year.
- A full fiat on-ramp, enabling direct INR deposits and crypto purchases, is set for 2026, signaling long-term commitment.
US-based cryptocurrency company Coinbase has reopened its doors to Indian users after more than two years. The U.S.-based exchange allows crypto-to-crypto trading immediately, while a full fiat on-ramp, enabling users to deposit money and buy cryptocurrencies directly, is set for 2026.
Speaking at the India Blockchain Week earlier this month, Coinbase’s APAC director John O’Loghlen 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.” John confirmed the return, noting the previous full off-boarding was necessary for a “clean slate.”
As confirmed by a TechCrunch report, the company restarted operations after registering with the Financial Intelligence Unit (FIU) earlier this year, following a period of regulatory uncertainty and operational suspension.
Coinbase first entered India in 2022 but shut down UPI support within days after the National Payments Corporation (NPCI) refused to acknowledge its operations. By 2023, the exchange fully exited India, asking users to offload their accounts. The latest reopening comes after early access trials in October and full app registration for all Indian users.
Regulatory challenges and market context
Strict regulations and high taxation have long made India a difficult environment for crypto companies. The government imposes a 30% tax on crypto gains, does not allow any offset against losses, and levies 1% deduction per transaction (TDS).
This makes trading frequency very costly for the users. O’Loghlen remains optimistic, saying that Coinbase hopes the government will ease these tax burdens to encourage Indians to hold digital assets.
In addition to tax-related issues, crypto adoption has been slower compared to the rapid growth of social platforms and AI services in India. Still, Coinbase’s renewed focus signals confidence in longer-term growth.
The firm will expand a team of more than 500 employees to support local and global operations. “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 to onboard in a matter of minutes,” O’Loghlen added.
Strategic investments and market expansion
Coinbase recently invested in local exchange CoinDCX, currently valued at $2.45 billion. It also approached the Competition Commission of India (CCI) to approve the purchase of a minority stake in DCX Global, the parent company of CoinDCX. Although no financial details emerged on the deal, the filing states that the investment wouldn’t hamper competition in India’s crypto marketplace.
Recently, in late November, Coinbase Ventures issued an investment outlook for 2026. It pinpointed some focus areas that include RWA-perps, speciality exchanges, decentralized finance (DeFi) infrastructure, and the intersection of crypto, AI, and robotics. For the company, innovation in the next few years would be built upon stablecoin infrastructures, cross-chain proof systems, and prediction markets in India.
Coinbase coming back shows that India’s crypto market still has potential, even with taxes and strict rules. By planning a way for people to deposit regular money and buy crypto, and by growing its team locally, Coinbase wants to make using crypto simpler and safer. This return could also show other international exchanges how to operate in India while following rules and keeping users’ trust.
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