Coinbase has resumed user registrations in India after a two-year break, allowing users to engage in crypto-to-crypto trading once again. This move signifies a significant effort by the company to re-establish its presence in one of the largest digital asset markets globally. According to John O’Loghlen, Coinbase's Asia-Pacific director, the platform aims to introduce a fiat on-ramp by 2026, enabling users to deposit rupees into the app to directly purchase cryptocurrencies. This feature was withdrawn shortly after its 2022 launch when India's Unified Payments Interface pulled away from Coinbase, leading to the company's exit and the offboarding of millions of users by 2023.
Coinbase's return to India involved starting afresh with domestic regulators, including engagement with India’s Financial Intelligence Unit, which supervises compliance and anti-fraud measures. After securing registration earlier this year, Coinbase discreetly began a limited onboarding process in October as part of an early-access program, eventually expanding access more broadly this month.
The company’s re-entry coincides with the challenges posed by India’s strict tax policies on digital assets, which include a 30% income tax without loss offsets and a 1% tax deducted at source on every trade. These regulations have significantly impacted local trading volumes and complicated exchange operations. Since the tax's introduction in 2022–23, the Indian government has collected approximately $818 million (₹700 crore), with $323 million (₹269.09 crore) in the initial year and $525 million (₹437.43 crore) in 2023–24.
Despite these hurdles, Coinbase is advancing its strategy in India. In mid-October, the company announced an increased investment in CoinDCX, India's largest crypto exchange, valuing the firm at $2.45 billion. This partnership is seen as a more effective way for Coinbase to penetrate the market than attempting to rebuild its own payment systems. Additionally, Coinbase plans to expand its workforce in India, which already numbers over 500 employees, viewing the region as a strategic gateway to South Asia and the Middle East.