After stepping away from India for a couple of years, Coinbase has slipped back into the country’s crypto scene—this time with a more measured approach and plans that stretch into 2026.
The exchange isn’t rolling out all services at once, but the return alone marks a significant shift.
A Look Back at Coinbase’s Rocky Start
Coinbase originally entered India in 2022 with a splash, but things took a sharp turn within days.
The issue centered on UPI, India’s widely used instant payments system.
Soon after launch, the National Payments Corporation of India made it clear that it wasn’t aware of any crypto exchange integrating UPI, leaving Coinbase unable to offer fiat purchases.
With no seamless way for users to buy crypto using rupees, the cracks widened.
The company froze new signups in mid-2023 and eventually shut down local services entirely that September.
Why Coinbase Walked Away
John O’Loghlen, who oversees Coinbase’s operations across the Asia-Pacific region, spoke candidly about the decision during India Blockchain Week.
He explained that the company had millions of Indian users at one point but chose to off-board everyone to foreign-regulated entities.
It wasn’t a quick or easy choice, but one the company ultimately felt necessary.
What Sparked Their Comeback
Fast-forward to 2025, and things started to look up.
Coinbase announced that it had officially registered with India’s Financial Intelligence Unit.
This regulatory foothold allowed the company to reopen the gates—first softly in early access, then fully to the public.
For now, users can only swap one crypto asset for another.
But fiat deposits are on the horizon, with O’Loghlen revealing that an INR on-ramp is expected next year.
That step would finally allow users to buy crypto directly with rupees again.
India’s Tough-but-Open Crypto Landscape
Unlike China’s outright rejection of digital assets, India’s stance is more nuanced.
The country permits crypto ownership and trading but enforces strict tax rules:
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30% tax on gains, with no ability to offset losses
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1% TDS on every transaction for tracking purposes
These policies have slowed adoption and placed pressure on exchanges. Coinbase is hoping lawmakers will eventually soften these rules to make participation less burdensome for everyday investors.
Beyond Trading: Coinbase Builds Local Ties
Coinbase isn’t simply reopening shop—it’s also investing in India’s own crypto ecosystem.
Recently, the company backed CoinDCX, one of the country’s major crypto exchanges.
In its announcement, Coinbase highlighted that India and surrounding regions are poised to shape the future of the global onchain economy, signaling long-term intentions beyond regulatory hurdles.
Bitcoin’s Market Mood
As all this unfolds, Bitcoin itself has been showing strength.
The leading cryptocurrency is hovering around $91,800, gaining more than 7% in the past week after bouncing back from a recent dip.
Why This Matters
Coinbase’s return signals more than just a business decision.
It reflects renewed confidence in India’s role within the global crypto landscape.
With regulatory compliance in place and plans for a fiat bridge underway, this could mark a new era for both the exchange and the millions of Indian users watching closely.
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