Coinbase Re-Enters India Market as Crypto Adoption Soars to Global No. 1

India's Web3 ecosystem is gaining momentum, with the IBW2025 event highlighting the country's growing influence as a center for innovation in blockchain and decentralized technologies. Despite regulatory challenges and market volatility, Indian startups, investors, and developers are forging ahead with ambitious projects. The event brought together industry leaders to discuss the future of decentralized finance (DeFi), non-fungible tokens (NFTs), and the potential for India to become a global leader in the next phase of the internet.

Coinbase's return to India after a two-year hiatus has added fuel to the discussion. The platform now allows Indian users to sign up and conduct crypto-to-crypto trades, with plans to introduce a fiat on-ramp in 2026 that will let users convert rupees into digital assets according to reports. This move reflects growing confidence in India's crypto market, which Chainalysis' 2025 Global Crypto Adoption Index ranks as the most active in the world. India's position at the forefront of crypto adoption underscores the country's digital-savvy population and robust developer community.

The reopening of access for Indian users also aligns with broader trends in the sector. The government has ramped up oversight of digital assets, enforcing a 30% tax on crypto profits and a 1% tax on each trade, but regulatory clarity is slowly emerging. Coinbase's engagement with India's Financial Intelligence Unit and its renewed investment in domestic exchanges signal a shift toward constructive dialogue with regulators.

A Growing Ecosystem

India's ascent in the Web3 space is not limited to trading and adoption. The country's tech infrastructure, bolstered by domestic defense production reaching ₹1.51 trillion and the expansion of e-commerce into new categories, is creating a fertile ground for blockchain innovation. Startups like Snapdeal's parent company AceVector are leveraging e-commerce growth to drive digital transformation, with India's online retail market expected to nearly double to $234.4 billion by 2030. This environment supports the integration of blockchain solutions into supply chains, logistics, and digital identity systems.

Meanwhile, international players are eyeing India's market potential. Robinhood recently entered the Indonesian crypto space by acquiring a local trading firm, echoing similar strategies for India. The platform aims to leverage India's youthful, digitally connected population to boost low-cost trading access, though regulatory compliance remains a critical hurdle. Coinbase's partnership with India's largest exchange, CoinDCX, and its plans to expand its workforce in the country also reflect a long-term bet on India's growth potential in the crypto space according to reports.

Policy and Regulatory Uncertainty

Despite the momentum, regulatory uncertainty remains a key challenge. India's financial regulators continue to push for a digital rupee while imposing heavy taxes on private cryptocurrencies. At the same time, the Reserve Bank of India has taken steps to re-engage with crypto platforms, suggesting a possible shift from previous crackdowns according to analysis. However, tax authorities are intensifying scrutiny of digital-asset transactions, investigating high-net-worth individuals and demanding reports from crypto platforms as reported. This creates a complex landscape for exchanges and investors.

The government's emphasis on domestic infrastructure, as seen in the defense sector, also hints at a broader strategy to build self-reliance in critical technologies. With India investing heavily in domestic production and strategic infrastructure, the Web3 ecosystem is likely to benefit from a more supportive environment in the long term according to reports.

What This Means for Investors

For investors, India's crypto and Web3 ecosystem presents both opportunities and risks. The sector is attracting attention from global institutional investors, particularly as Jio's anticipated initial public offering is expected to boost sector free cash flow and support long-term growth. Analysts note that India's average revenue per user (ARPU) in the telecom sector remains among the lowest globally, but improving infrastructure and digital adoption could drive a 12–15% return on capital employed (RoCE) in the coming years according to projections.

Startups and exchanges entering the market are also drawing attention. AceVector's IPO plans highlight growing confidence in India's e-commerce and digital infrastructure, while companies like Coinbase and Robinhood are betting on the scalability of India's crypto market. However, investors must remain cautious of regulatory shifts and market volatility, particularly as India continues to navigate the balance between fostering innovation and maintaining financial stability.

India's Web3 landscape is evolving rapidly, with the country positioned as a key player in the global digital-asset market. While regulatory challenges persist, the combination of a young population, strong tech infrastructure, and growing institutional support points to a long-term upward trajectory. As Coinbase, Jio, and others continue to invest in India's digital future, the country's role in the Web3 revolution is likely to become even more prominent.