Coinbase Reenters India With Crypto Trading, Aims for 2026 Fiat Launch

Coinbase, the largest U.S.-based cryptocurrency exchange, has reopened user registrations in India after a two-year absence. The move marks a significant step toward re-establishing the company's presence in one of the world's largest digital-asset markets. Indian users can now sign up for the app and engage in crypto-to-crypto trading, though a full fiat on-ramp for rupee deposits is still planned for 2026 according to reports.

The reentry follows Coinbase's formal registration with India's Financial Intelligence Unit (FIU) earlier this year, a key regulatory step required to comply with anti-money laundering (AML) standards. The company had previously suspended all operations in India in late 2023, citing challenges with integrating into the country's Unified Payments Interface (UPI). Now, with compliance in place, Coinbase is preparing to roll out a more comprehensive service as announced.

This shift reflects Coinbase's strategy to align with India's evolving financial landscape. John O'Loghlen, Coinbase's Asia-Pacific director, emphasized the company's commitment to regulatory alignment during India Blockchain Week. "We wanted a fresh start here," he said, referencing the earlier decision to off-board millions of Indian users from overseas entities according to the report.

Why the Standoff Happened

Coinbase's initial entry into India in 2022 was met with regulatory hurdles almost immediately. The National Payments Corporation of India (NPCI), which operates UPI, refused to approve Coinbase's integration for local payments. This decision forced Coinbase to suspend UPI support just days after launching in the country. A full withdrawal followed in late 2023, with the company advising existing Indian users to close their accounts as reported.

The absence from India lasted over two years, during which Coinbase focused on rebuilding its relationship with local regulators. O'Loghlen described the period as a strategic pause aimed at ensuring full compliance. "It wasn't without some hesitation," he added, acknowledging the difficulty of stepping back from a growing user base in favor of long-term regulatory alignment.

What This Means for Investors

Coinbase's return to India is part of a broader regional expansion strategy. The company has already taken steps to strengthen its presence, including a significant investment in India's largest crypto exchange, CoinDCX, which is now valued at $2.45 billion. This partnership is seen as a key pathway for Coinbase to reintegrate into the Indian market, leveraging CoinDCX's existing infrastructure and user base according to industry analysis.

The firm is also ramping up its local workforce, with plans to expand its team in India to over 500 employees. Roles are being opened in engineering, compliance, and customer support, indicating a long-term commitment to the market. O'Loghlen stressed the importance of building a "trusted exchange" in India, emphasizing security, ease of use, and regulatory compliance as priorities.

Risks to the Outlook

Despite Coinbase's optimism, India's crypto market faces significant challenges. The Indian government imposes a 30% tax on digital-asset income and a 1% tax deducted at source on each trade, with no provision for offsetting losses. These rules have dampened trading volumes and complicated operations for exchanges. The government has collected over $818 million in digital-asset taxes since 2022, but industry experts say the burden on users has been heavy according to financial data.

Coinbase's plans for a fiat on-ramp in 2026 could ease some of these barriers, allowing users to deposit rupees directly into the app. O'Loghlen expressed hope that the government might ease tax rules to encourage broader adoption. For now, however, the regulatory environment remains a key risk for any crypto firm operating in the country as noted by industry analysts.

India's crypto market, despite its challenges, remains vibrant. According to TRM Labs, the country ranked first in global crypto adoption for the third consecutive year in 2025. Other global exchanges, including Bybit and Binance, have also returned to the market in recent months, signaling confidence in India's digital future as reported.