Coinbase Officially Reopens App in India After Over Two Years of Suspension
- Coinbase reopens in India after two years following registration with the Financial Intelligence Unit.
- Users can trade crypto now and a full fiat on-ramp is planned for 2026.
- India leads global crypto adoption and Coinbase invests in local exchange CoinDCX.
The biggest American-based cryptocurrency exchange, Coinbase, has re-opened its application in India. The relocation follows the fact that the company has not operated in the country in more than two years. Coinbase first introduced its operations in India in 2022 but was forced to shut down its operations because of the regulatory challenges.
The exchange is currently working upon being registered with the Financial Intelligence Unit (FIU), in order to have the exchange compliant with anti-money laundering laws in India. This registration cleared the path for Coinbase to resume services to Indian users. The reopening initially started with an early-access program in October and has now expanded to all users.
Plans for Fiat On-Ramp and Local Expansion
Coinbase plans to introduce a full fiat on-ramp in 2026 to allow Indian users to deposit funds directly. For now, customers can conduct only crypto-to-crypto trades. This strategy is part of the exchange’s broader goal to increase its user base in India.
The company has also increased investments in the local crypto exchange CoinDCX. Recent funding has given this platform a valuation of $2.45 billion. Coinbase currently seeks to employ its workforce of more than 500 employees in India with both local and international jobs.
Regulatory Challenges and Tax Considerations
Coinbase’s earlier exit followed the National Payments Corporation of India (NPCI) refusing to recognize its UPI integration. This left the exchange unable to support the Unified Payments Interface, forcing it to stop all operations by 2023. Users were instructed to close their accounts during this period.
India levies a 30% tax on cryptocurrency income, including losses, and a 1% tax on all transactions. Analysts indicate that these rules may restrict the frequency of trading. However, Coinbase remains optimistic that regulatory adjustments and potential tax relief could improve the market environment.
India’s Growing Crypto Market
India continues to lead global cryptocurrency adoption for the third consecutive year. The country surpasses the United States, Pakistan, the Philippines, and Brazil in crypto usage. Other global exchanges, such as Binance and Bybit, have also returned to India following regulatory compliance and penalties. However, earlier this year India investigated 400+ Binance traders for crypto tax evasion.
Coinbase reentry is another indication of an upsurge in internet and finance firms accessing the second largest online market in India. Analysts observe that as social media and AI apps are rapidly growing, crypto companies are more regulated. Nevertheless, Coinbase aims to become a trusted exchange whose services and secure web platforms are easy to use by the Indian users.
