Coinbase has re-entered the Indian market after more than two years away, signalling a renewed push into one of the world’s most tightly regulated crypto environments. The U.S.-based exchange has restored services for users in India, starting with crypto-to-crypto trading, while laying the groundwork for a full fiat on-ramp that could enable direct rupee deposits by 2026.
The company confirmed its return during India Blockchain Week, where John O’Loghlen, Coinbase’s Asia-Pacific director, said operations resumed only after the exchange completed registration with India’s Financial Intelligence Unit earlier this year. He explained that Coinbase had previously off-boarded all Indian users to fully disengage from earlier challenges, adding that the company is now restarting operations with a clear focus on compliance and long-term commitment.
Coinbase first launched in India in 2022 but ran into immediate difficulties after the National Payments Corporation of India declined to support its UPI integration. The setback forced the company to suspend the service within days, and it eventually withdrew from the market in 2023. Its latest return follows months of limited early-access testing that began in October, alongside the reinstatement of the Coinbase app for users across the country.
India remains a difficult market for crypto exchanges. Digital asset profits attract a 30 per cent tax, trading losses cannot be offset, and a 1 per cent tax deducted at source applies to every transaction. These measures have dampened trading activity across the sector. O’Loghlen acknowledged the impact of the tax regime but said there is optimism that policymakers may revisit the framework as digital assets gain wider acceptance.
The exchange is also growing its workforce of more than 500 employees in India, who support both local and global operations. According to O’Loghlen, improving user experience will be central to Coinbase’s strategy, with an emphasis on easy onboarding, intuitive platforms, and strong security to attract new users.
Beyond trading services, Coinbase has increased its involvement in India’s broader crypto ecosystem. The company recently invested in CoinDCX and is seeking regulatory approval to acquire a minority stake in its parent firm, DCX Global. Coinbase Ventures has also identified India as a key market in its 2026 investment outlook, highlighting opportunities in decentralised finance infrastructure, advanced trading platforms, real-world asset derivatives, cross-chain technologies, and emerging applications combining crypto, artificial intelligence, and robotics.
Coinbase’s return underscores its belief in India’s long-term potential for crypto adoption, despite persistent regulatory and tax challenges. With plans for a rupee-based fiat channel and deeper local engagement, the exchange appears intent on building a compliant and sustainable presence that could influence how other global platforms approach the Indian market.
