After a hiatus of more than two years, cryptocurrency exchange Coinbase has reopened its platform for users in India.

Currently, the service allows crypto-to-crypto trading, but the company plans to introduce a fiat on-ramp in 2026, enabling Indian users to deposit money and purchase cryptocurrencies directly, according to John O’Loghlen, Coinbase’s APAC director, speaking at India Blockchain Week (IBW).

Coinbase initially entered the Indian market in 2022, but within days, it was forced to suspend support for the Unified Payments Interface (UPI) after the National Payments Corporation of India (NPCI) did not officially recognize its presence.

By 2023, the exchange had halted all operations for Indian users, urging them to close their accounts.

“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats, have a clean slate here. As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so it wasn’t without some hesitation,” O’Loghlen explained.

Following regulatory challenges, Coinbase engaged with the Financial Intelligence Unit (FIU), a government body responsible for monitoring transactions and preventing fraud, and officially registered with the agency this year.

In October, the platform began onboarding users through early access, and it is now available to all Indian users.

India has attracted numerous global tech and internet companies, eager to tap into the country’s large online population.

While social media and AI platforms such as OpenAI have achieved rapid growth, cryptocurrency firms have faced hurdles due to stringent regulations and taxation policies.

India imposes a 30% tax on crypto income without allowing loss offsets and a 1% deduction on each transaction, measures that may deter frequent trading.

O’Loghlen expressed optimism about future regulatory changes. “We hope the government will relax taxation to make it less burdensome for people to hold digital assets,” he said.

Despite regulatory complexities, Coinbase remains committed to expanding in India. Its venture arm recently invested in local exchange CoinDCX, which has a post-money valuation of $2.45 billion, and the company plans to expand its workforce of over 500 employees, hiring across roles that serve both domestic and global markets.

“I think we want to be known as that trusted exchange, ensure that your funds are safe with us. We’re not going to reach the masses if you can’t have a really nice UI, a trusted experience that allows you to onboard in minutes in the same way you do with Zepto, Flipkart, or any other super app in India,” O’Loghlen added.

Source: Techcrunch