Coinbase Resumes India User Onboarding, Plans Fiat Support for 2026
▼ Summary
– Coinbase has reopened its app for registration in India after a two-year pause, currently allowing crypto-to-crypto trades and planning to enable fiat deposits in 2026.
– The company previously had to shut down its Indian operations in 2023 after regulatory issues, including the loss of UPI payment support and a decision to off-board all existing users.
– Coinbase has now registered with India’s Financial Intelligence Unit (FIU) and has fully opened its app to all users in the country.
– The crypto market in India faces significant regulatory hurdles, including a 30% tax on crypto income and a 1% transaction deduction, which Coinbase hopes the government will relax.
– Despite these challenges, Coinbase is investing in the Indian market, including funding local exchange CoinDCX and planning to expand its local team of over 500 employees.
Following a significant hiatus, the popular cryptocurrency exchange Coinbase has officially reopened its platform for user registrations in India. This move marks a strategic re-entry into one of the world’s most promising digital markets. While the service currently supports crypto-to-crypto trading, the company has announced a pivotal development for the future. Coinbase plans to introduce a fiat currency on-ramp in 2026, which will finally allow Indian customers to directly deposit rupees and purchase digital assets through the platform.
The exchange’s initial foray into India in 2022 was short-lived. Operations were quickly scaled back after the Unified Payments Interface (UPI) network, operated by the National Payments Corporation (NPCI), declined to recognize Coinbase’s presence. By 2023, the company had ceased all services for Indian users, requesting they withdraw their funds entirely. John O’Loghlen, Coinbase’s APAC director, described this decisive action as creating a “clean slate,” acknowledging it was a difficult commercial decision to off-board millions of existing customers from overseas entities.
This fresh start follows a period of regulatory engagement. The company worked with India’s Financial Intelligence Unit (FIU), the government body responsible for monitoring financial transactions, and successfully completed its registration earlier this year. A limited early-access program began in October, paving the way for the current public rollout.
India represents a massive opportunity with its vast internet user base, attracting numerous global tech firms. However, crypto companies have faced a uniquely challenging environment compared to social media or AI ventures. Stringent regulations and a demanding tax framework have created significant hurdles. The Indian government imposes a flat 30% tax on crypto profits without allowing losses to offset gains, coupled with a 1% Tax Deducted at Source (TDS) on every transaction. O’Loghlen expressed hope that authorities might reconsider these policies to reduce the burden on ordinary investors holding digital assets.
Despite these obstacles, Coinbase is demonstrating a long-term commitment to the Indian market. Its confidence is underscored by a recent investment from Coinbase Ventures into the local exchange CoinDCX, valuing the firm at $2.45 billion. Furthermore, the company intends to expand its existing Indian team of over 500 employees, hiring for roles that support both local and international operations.
O’Loghlen emphasized that building trust and delivering a seamless user experience are central to their strategy. The goal is to become the trusted exchange where users feel their funds are secure, offering an interface and onboarding process as intuitive and reliable as leading Indian consumer apps like Flipkart or Zepto.
(Source: TechCrunch)