Coinbase Returns to India After Two-Year Hiatus with Plans for Fiat Integration by 2026
Coinbase has reopened registration in India after a two-year pause and is planning to introduce rupee deposits and fiat integration by 2026. Currently, its platform supports crypto-to-crypto trading only.
The company initially entered the Indian market in April 2022 but suspended operations just days later following the National Payments Corporation of India's (NPCI) refusal to recognize the Unified Payments Interface (UPI). By September 2023, Coinbase had completely withdrawn from the country. Informal pressure from the Reserve Bank of India (RBI) was cited as a factor behind the earlier suspension.
In 2024, Coinbase secured registration with the Financial Intelligence Unit (FIU) and launched early access in October 2024. The company targets general availability and the introduction of retail services later in 2025. Coinbase has also invested in Indian crypto exchange CoinDCX, valued at $2.45 billion, and employs over 500 people in India, continuing to hire for both domestic and international operations.
India's cryptocurrency tax regime remains highly punitive, imposing a 30% tax on profits and a 1% transaction tax. This results in an effective tax rate of 42.7% for high-income traders. While authorities maintain partial oversight of the crypto sector, full crypto legislation has been delayed.
The RBI opposes private cryptocurrencies due to macrofinancial concerns. In January 2024, authorities conducted a crackdown on offshore exchanges. Approximately 400 high-net-worth individuals are under investigation for tax evasion related to peer-to-peer crypto activity, noting that about 90% of Indian crypto trading volume occurs offshore.
Coinbase is emphasizing security and a user-friendly interface to build trust and enable quick onboarding as it re-enters the Indian market. India is emerging as a major blockchain development hub with increasing Web3 activity, while the government promotes the digital rupee and maintains strict taxation on private cryptocurrencies.
