Coinbase has reopened user onboarding in India after more than two years, marking a major return to a market it exited due to regulatory hurdles. The firm restored registrations after running an early-access program in October, and it now allows full sign-ups while limiting activity to crypto-to-crypto trading as it rebuilds operations.
Coinbase resumed access through a controlled early-access launch in October as it sought a stable path back into the country. The company then expanded entry for all users this month as its compliance work progressed. Indian users can now trade only crypto pairs. Coinbase APAC Director John O'Loghlen said at India Blockchain Week that a full fiat on-ramp will return in 2026. That feature once enabled users to load rupees directly into the app.
Coinbase disabled support for the Unified Payments Interface in April 2022, days after launching in India. The UPI operator distanced itself from the platform, and Coinbase later halted all services for local users in September 2023.
The company offboarded ‘millions’ of users in 2023. O'Loghlen described the move as part of a clean-slate approach with regulators, as Coinbase tried to reset its compliance strategy in the country.
Since its return began in October, Coinbase has continued to restore functions in phases. It also announced an investment in CoinDCX as part of a broader effort to strengthen its regional footprint.
Coinbase began formal engagement with India’s Financial Intelligence Unit after its 2023 withdrawal. The FIU supervises compliance and anti-fraud rules for virtual asset providers. The company secured FIU registration earlier this year. This step unlocked the path for Coinbase to resume onboarding while meeting domestic oversight requirements.
It then quietly reopened the app through the early-access program. The broader rollout followed as the firm renewed contact with regulators and restructured its operational model. Several global exchanges have taken similar steps. Bybit restored full access in September, and Binance returned to India in August 2024 after paying a $2.25 million penalty.
The shift raises a key question: can global exchanges operate sustainably under India’s rigid tax and reporting demands? India remains first in global crypto adoption for the third year in a row, according to TRM Labs. The country leads ahead of the U.S., Pakistan, the Philippines, and Brazil.
Despite high adoption, operators must navigate strict tax rules. These include a 30% levy on digital-asset income without loss offsets and a 1% tax deducted at source on every trade.
India collected about $818 million in digital-asset taxes since the levy began in 2022–23. This consists of $323 million in the first year and $525 million in 2023–24. Industry groups say the rules cut trading volumes.
Coinbase is proceeding despite the pressure as it seeks long-term growth in one of the world’s largest retail crypto markets. The company is using its phased return to align with local regulators and rebuild trust.
Its investment in CoinDCX shows continued interest in India’s ecosystem and Middle East expansion plans. The move also signals confidence in the region despite operational challenges.
Crypto activity remains significant nationwide. Users continue to trade digital assets at scale, and engagement persists even under stricter compliance expectations. Some exchanges have already found pathways back into the market. Their re-entries suggest growing regulatory clarity, though challenges remain for foreign platforms.
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Coinbase’s return to India marks a renewed push into a high-adoption market as it rebuilds operations through FIU registration and crypto-to-crypto trading. The planned 2026 fiat pathway signals steady re-entry, and continued engagement with regulators may shape how global exchanges navigate India’s evolving digital-asset framework.