Coinbase Returns to India With Crypto-to-Crypto Trading Restart

Coinbase has reopened access to its platform for Indian users after a two-year hiatus, marking a significant return to the market. The exchange previously exited India in 2023 due to regulatory challenges, but has now resumed user onboarding and crypto-to-crypto trading according to reports. The move follows successful registration with India's Financial Intelligence Unit (FIU), a critical step for compliance with anti-money laundering (AML) regulations as per the company's announcement.

The re-entry comes with a plan to introduce a full fiat on-ramp by 2026, allowing Indian users to deposit Indian Rupees (INR) and purchase cryptocurrencies directly according to its official statement. This development underscores Coinbase's long-term commitment to the Indian market, despite ongoing regulatory and tax hurdles.

Coinbase's Asia-Pacific director, John O'Loghlen, emphasized the importance of a "clean slate" in rebuilding the company's presence. Speaking at India Blockchain Week, he noted that the firm had previously off-boarded millions of Indian users to ensure regulatory alignment and compliance as research shows. The company's renewed approach includes a focus on local investments and expanded operations.

Why the Standoff Happened

Coinbase's initial entry into India in 2022 was met with regulatory friction. The company had suspended support for the Unified Payments Interface (UPI) shortly after launching in the country, as the National Payments Corporation of India (NPCI) refused to recognize Coinbase's operations according to industry reports. By September 2023, Coinbase had halted all services for Indian users and encouraged them to close their accounts or transfer funds according to official communications.

The regulatory hurdles extended beyond UPI. India's complex tax regime, including a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on each transaction, added to the challenges for exchanges according to financial analysts. These factors contributed to Coinbase's decision to temporarily exit the Indian market and focus on compliance and regulatory engagement.

Market Reactions and Strategic Moves

Despite the regulatory environment, India remains a key market for digital assets. The country ranks first in global crypto adoption, according to a 2025 report from TRM Labs. Coinbase's return reflects confidence in the market's long-term potential. In October 2025, the exchange announced a $2.45 billion investment in India's leading crypto exchange, CoinDCX, further signaling its commitment as reported by financial news outlets.

The exchange has also begun expanding its India-based workforce, with plans to employ over 500 people across engineering, compliance, and customer support roles as part of its growth strategy. This move is part of a broader strategy to enhance user experience and build trust through localized operations.

Coinbase's re-entry comes amid a growing trend of global exchanges returning to India. Binance and Bybit have also re-entered the market after clearing compliance requirements and paying penalties as reported by financial sources. This suggests a broader shift in how global crypto firms are adapting to India's evolving regulatory landscape.

What This Means for Investors

For Indian investors, Coinbase's return offers a more stable and compliant platform for crypto trading. While fiat on-ramp functionality is still slated for 2026, the immediate availability of crypto-to-crypto trading provides users with greater flexibility according to platform updates. The platform's long-term plans, including improved user onboarding and regulatory alignment, could enhance the overall crypto experience for retail investors.

Analysts are watching closely to see how Coinbase navigates India's tax and regulatory environment. O'Loghlen has expressed hope that future policy changes will ease the burden on crypto users and encourage broader adoption according to industry analysis. For now, the focus remains on building trust and ensuring compliance, with the expectation that India's regulatory framework will continue to evolve in 2026 and beyond.