Cryptocurrency giant Coinbase has officially reopened its doors to Indian users after a two-year hiatus, marking a significant development in India’s evolving digital asset landscape. The platform currently supports crypto-to-crypto transactions, with plans to introduce fiat on-ramp capabilities by 2026, according to John O’Loghlen, Coinbase’s APAC director, who shared these developments during his address at India Blockchain Week.
The journey back to India hasn’t been straightforward for the exchange. Coinbase initially launched in India in 2022 but encountered immediate regulatory obstacles when the National Payments Corporation of India (NPCI) refused to acknowledge its operations, forcing the platform to suspend its Unified Payments Interface (UPI) support within days of launch. The situation deteriorated further in 2023 when Coinbase completely ceased operations in the country, directing Indian users to withdraw their funds.
Strategic Reset and Regulatory Compliance
O’Loghlen described the difficult decision to completely off-board Indian customers from overseas entities as a strategic reset. “We had millions of customers in India historically, and taking the decision to start with a clean slate was perhaps the worst thing you can do from a business perspective,” he explained. This move, while commercially challenging, positioned Coinbase for a compliant return to the market.
The exchange has since engaged extensively with India’s Financial Intelligence Unit (FIU), the government agency responsible for monitoring financial transactions and fraud prevention. This engagement culminated in Coinbase securing registration with the FIU earlier this year. Following this regulatory milestone, the company began a phased reentry, starting with an early access program in October before recently opening registration to all users.
Navigating India’s Challenging Crypto Landscape
While India represents one of the world’s largest online user bases, crypto companies face unique challenges in the market. Unlike social platforms and AI companies that have experienced rapid growth, cryptocurrency businesses must navigate stringent regulations and prohibitive taxation structures.
The current tax regime imposes a 30% tax on cryptocurrency income without allowing for loss offset, alongside a 1% transaction tax (TDS) on each trade. This taxation framework significantly impacts trading frequency and market liquidity. O’Loghlen expressed hope that the government might eventually reconsider these policies to create a more conducive environment for digital asset holders.
Investment and Expansion Plans
Despite regulatory hurdles, Coinbase demonstrates confidence in India’s crypto potential through significant investments. The company’s venture arm recently increased its stake in local exchange CoinDCX, contributing to a post-money valuation of $2.45 billion. This investment signals Coinbase’s long-term commitment to the Indian market.
On the operational front, Coinbase plans to expand its current team of over 500 employees in India by creating multiple new positions focused on both local and global market needs. This workforce expansion aligns with the company’s broader strategy to establish a strong foundation in the country.
User Experience and Trust Building
O’Loghlen emphasized that Coinbase’s strategy in India centers on trust and user experience. “We want to be known as that trusted exchange, ensuring that your funds are safe with us,” he stated. The company recognizes that mass adoption requires a seamless onboarding process comparable to popular Indian applications like Zepto and Flipkart.
The focus on user interface and experience is particularly important in the Indian context, where digital literacy varies widely across the population. By offering an intuitive platform that allows users to onboard within minutes, Coinbase aims to overcome adoption barriers that have historically limited cryptocurrency usage in the country.
Market Outlook and Challenges
Coinbase’s return comes at a time when global cryptocurrency markets are showing signs of maturation following the turbulence of recent years. However, the company faces competition from established local exchanges that have maintained operations throughout regulatory uncertainty.
The success of Coinbase’s reentry will likely depend on several factors: regulatory developments, potential tax reforms, market education, and the company’s ability to differentiate its offering in a competitive landscape. The planned fiat on-ramp in 2026 represents a critical milestone that could significantly enhance accessibility for new users.
For Indian cryptocurrency enthusiasts, Coinbase’s return offers increased choice and potentially improved services as competition intensifies. For the broader market, it represents a vote of confidence from a major global player in India’s long-term cryptocurrency potential, despite current regulatory challenges.
As Coinbase rebuilds its presence in India, the company’s experience may serve as a case study for other international cryptocurrency businesses looking to navigate complex regulatory environments while maintaining compliance and building sustainable operations.