Coinbase India Comeback With Big Plan, Bigger Risks

Coinbase has reopened registrations in India after more than two years, marking a bold comeback in one of the world’s largest digital markets. The crypto exchange now allows crypto-to-crypto trades. However, it plans to launch a fiat on-ramp in 2026, which would let users load money and buy crypto directly.

A Sudden Exit Still Haunts Coinbase

The company first launched its India operations in 2022. Yet, it hit a wall within days as UPI support collapsed after NPCI refused to acknowledge Coinbase. Then in 2023, Coinbase off-boarded millions of Indian users and shut down local operations. According to APAC director John O’Loghlen, the company chose a “clean slate” approach before returning. The move hurt growth, but it helped Coinbase rebuild trust with regulators.

Regulatory Reset and FIU Approval

Coinbase began active engagement with the Financial Intelligence Unit earlier this year. As a result, it secured approval and started early-access onboarding in October. Now, the app is open to all users again. O’Loghlen stressed that Coinbase wants to be viewed as a trusted exchange with a simple and safe experience for Indian users. He said the goal is to match the seamless onboarding seen on major Indian apps.

India’s Tough Crypto Rules Still Loom Large

India’s strict tax system remains a challenge for every crypto platform. The country charges a 30% tax on income and a 1% deduction on every trade. These rules discourage active trading, limit liquidity and reduce market momentum. Even so, Coinbase hopes for relaxed taxation someday. For now, it is preparing for long-term play rather than short bursts of growth.

Why India Still Matters to Coinbase

Despite past setbacks, Coinbase continues to bet big on India. Its venture arm recently invested more in local exchange CoinDCX at a $2.45 billion valuation. The company also aims to expand its 500-plus team in India. Many of these roles will support both domestic and global operations. The message is clear: India remains a strategic market, even with the regulatory hurdles.

All Eyes on the 2026 Fiat On-Ramp

The real test begins next year when Coinbase activates its fiat on-ramp. This feature will decide whether the exchange can unlock mass adoption or face another setback. For now, Coinbase is back. But staying in India will demand trust, compliance and patience.