Coinbase, one of the leading cryptocurrency exchanges globally, has officially reopened user registrations in India after a lengthy hiatus of over two years, following its complete service shutdown in 2023. This repatriation into the Indian market comes at a time when cryptocurrencies are gaining increased attention in the region.
The exchange had initially launched its operations in India back in 2022, offering services that included support for the Unified Payments Interface (UPI). However, the platform faced significant hurdles, including conflicts over payment system integrations, leading to a hurried withdrawal shortly after its launch. The National Payments Corporation of India had not recognized Coinbase’s operation within its framework, bringing to an abrupt halt any aspirations the exchange had in the Indian market at that time.
As of now, Indian users can engage in crypto-to-crypto trading on the platform. However, popular fiat currency transactions are still on the horizon; Coinbase has announced plans to introduce an INR-to-crypto fiat ramp by 2026, enabling users to convert Indian Rupees directly into a range of digital assets.
In an effort to smooth the re-entry and ensure compliance with local regulations, Coinbase registered with India’s Financial Intelligence Unit (FIU) earlier this year to adhere to anti-money laundering requirements. This clean slate approach highlights the company’s commitment to maintaining regulatory standards as discussions around cryptocurrency regulations in India continue to evolve.
John O’Loghlen, Coinbase’s APAC director, confirmed at the recent India Blockchain Week that a phased approach to user registrations is being implemented, allowing a gradual onboarding process before opening the floodgates for all users. The announcement of a soft launch, which commenced in October, was well received within the crypto community, although users eagerly await the forthcoming fiat integration.
India has remained an important focus for Coinbase despite the challenges presented by the regulatory environment, which includes a substantial 30% tax on crypto gains and strict trading norms. Nevertheless, the company has continued to invest in the region, recently increasing its stake in local crypto exchange CoinDCX, valued at an impressive $2.45 billion. This aligns with Coinbase’s broader strategy to expand its footprint in high-potential markets, including in the Middle East.
The exchange currently employs over 500 staff in India, contributing to both domestic operations and global product development, indicative of the region’s critical role within its international strategy. Recognizing the potential of the Indian market, which has topped the charts for global crypto adoption for three consecutive years, Coinbase is poised to take full advantage of emerging opportunities.
In recent months, other major exchanges have also re-established a presence in India, demonstrating the resilience and potential of the Indian crypto landscape. For instance, Bybit restored full app access in September, and Binance re-entered the market in August 2024 after navigating regulatory penalties.
With a measured approach, Coinbase aims to fortify its position in India, building on both the operational groundwork and regulatory compliance necessary to sustain growth and expansion in this dynamic market. The anticipated fiat integration and growing interest from users present promising prospects for Coinbase as it strives to navigate the complexities of the Indian crypto arena.
