Coinbase Resumes Operations in India After Two-Year Exit and Pause

TLDR

• Coinbase restarts operations in India after suspending services in 2023.
• Users in India can now sign up for crypto-to-crypto trading on Coinbase.
• Coinbase plans to launch a fiat gateway in India by 2026 for rupee deposits.
• Coinbase’s investment in CoinDCX strengthens its position in India’s crypto market.

Coinbase, the San Francisco-based cryptocurrency exchange, has reopened its services in India after a two-year hiatus. This marks the return of the crypto giant to the Indian market, which it had exited in 2023 due to regulatory challenges. The platform has reactivated sign-ups, allowing users to once again engage in crypto-to-crypto trading. However, Coinbase has yet to fully integrate fiat currency transactions, with plans for such integration set for 2026.

Fiat Gateway Launch Planned for 2026

During India Blockchain Week, John O’Loghlen, Coinbase’s APAC Director, revealed the company’s plans to launch a fiat gateway by 2026. This gateway would allow Indian users to deposit Indian Rupees (INR) and purchase cryptocurrencies directly on the platform. Currently, Coinbase’s operations in India are limited to crypto-to-crypto trading, but the future fiat integration would offer a more comprehensive service to local users.

“Our goal is to provide a trusted and seamless experience for Indian customers, allowing them to deposit and trade cryptocurrencies with INR directly,” said O’Loghlen. This plan comes after Coinbase’s exit from the market in 2023, when regulatory issues forced it to suspend services.

Challenges and Strategic Compliance Efforts

The company’s decision to leave India in 2023 was a significant one. It was primarily due to a regulatory disagreement with India’s National Payments Corporation, which refused to allow Coinbase to use the Unified Payments Interface (UPI). As a result, Coinbase was forced to close accounts and transfer funds for local customers. This exit was part of a larger industry trend, as other crypto exchanges also faced regulatory hurdles in India during this period.

In 2024, Coinbase re-engaged with India’s Financial Intelligence Unit (FIU) to work on securing the necessary compliance to re-enter the market. Coinbase’s efforts culminated in approval from the FIU, allowing the exchange to resume its services in October 2025. This approval was essential to bring Coinbase back into operation and gain the regulatory clarity required for further expansion in India.

Regulatory and Taxation Barriers for Crypto in India

India’s current taxation framework for cryptocurrency remains one of the most stringent globally. The government imposes a 30% tax on crypto profits, without allowing traders to offset losses. Furthermore, a 1% Tax Deducted at Source (TDS) is applied on every transaction, discouraging frequent trading. Coinbase has expressed hope that the tax laws will become more favorable over time, making the cryptocurrency market more accessible in India.

Despite these challenges, India remains a key market for digital asset adoption. Coinbase is positioning itself as a trusted platform to navigate the complex regulatory landscape. With its new compliance efforts and user-friendly platform, Coinbase hopes to attract Indian crypto investors, who have been actively seeking alternatives amid heavy taxation and regulatory uncertainty.

Coinbase’s Expansion and Investment in India’s Crypto Ecosystem

Coinbase is not only focusing on relaunching its platform in India but also strengthening its position in the country through strategic investments. The company recently invested in CoinDCX, one of the largest crypto exchanges in India, at a valuation of $2.45 billion. This investment aligns with Coinbase’s long-term strategy to establish a solid foothold in the Indian market.

Additionally, Coinbase has committed to hiring local talent and increasing its workforce in India. Currently, Coinbase employs over 500 people in the country, with plans for further expansion. This investment and commitment to local operations demonstrate Coinbase’s intention to stay in India for the long haul, despite the regulatory hurdles.

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