After a two-year exit, Coinbase is reopening its doors in India with crypto-to-crypto trading and a roadmap for fiat integration by 2026.
Key Takeaways
- Coinbase resumes user onboarding in India, offering crypto-only trading while preparing to add fiat deposit options by 2026.
- The move follows regulatory friction in 2022 that led to a complete service halt and the offboarding of millions of Indian users.
- The company is now registered with the Financial Intelligence Unit (FIU) and exploring partnerships for regulated payment integration.
- Despite India’s tough crypto tax rules, Coinbase is doubling down on investment and team expansion in the country.
What Happened?
Coinbase has restarted operations in India after a long regulatory pause that began in 2022. While users can now sign up and trade between cryptocurrencies, direct deposits and withdrawals in Indian rupees are still off the table. The company has a new strategy in place to reintroduce fiat support by 2026 through partnerships with local banks and payment providers, excluding UPI for now.
COINBASE REOPENS IN INDIA 🇮🇳
— Wise Advice (@wiseadvicesumit) December 8, 2025
They have resumed onboarding Indian users after more than 2 years.
They previously had to halt INR payments soon after the 2022 launch.
A proper INR-to-crypto fiat ramp is planned for 2026.
Which exchange wins INDIA now? 👀 pic.twitter.com/1YTeX7556f
Coinbase Rebuilds Trust in India After Regulatory Roadblocks
Coinbase’s initial launch in India in 2022 was short-lived. The exchange rolled out support for the Unified Payments Interface (UPI) but had to pull back within days after the National Payments Corporation of India (NPCI) denied its affiliation. This led to a complete shutdown of services in 2023, with millions of Indian users offboarded and all local access cut off.
Rather than make a partial return, Coinbase chose a fresh start. As John O’Loghlen, APAC director at Coinbase, explained during India Blockchain Week, the team opted to “burn the boats” and rebuild from scratch. This meant working directly with India’s Financial Intelligence Unit, the agency monitoring digital asset compliance, to formally register and ensure regulatory alignment.
In October 2025, Coinbase began an early access program for Indian users. The app is now open to all, allowing users to register and perform crypto-to-crypto trades. Fiat transactions will not resume until 2026, pending further progress on regulatory clarity and partnership development.
Roadmap to Fiat Support and Local Payment Integration
Coinbase is eyeing 2026 as the year to bring back fiat transactions in India. This time, it plans to avoid previous missteps by relying on payment methods like IMPS and NEFT instead of UPI. The company is already in talks with payment aggregators and local banks that are willing to work with crypto-related flows under stricter KYC and AML standards.
Another option on the table is a hybrid model, where licensed Indian partners handle rupee custody and settlements, while Coinbase continues to operate the trading platform and liquidity network globally. This approach mirrors practices in other countries where local regulation demands operational segregation between domestic finance and foreign crypto services.
India’s Tax Landscape Still a Hurdle
India continues to be a difficult environment for crypto firms. The government enforces a 30% flat tax on crypto gains, bans any form of loss offsetting, and charges a 1% tax deducted at source (TDS) on each transaction. These rules have reduced trading volumes and deterred casual users.
Coinbase is responding by developing India-specific reporting and compliance tools to help users navigate the complex tax system. O’Loghlen expressed hope that future government policies might ease the burden and allow broader adoption of digital assets.
Coinbase’s Long-Term Commitment to India
Despite the headwinds, Coinbase is not backing down. The company recently increased its investment in local crypto exchange CoinDCX, which now has a post-money valuation of $2.45 billion. It also plans to expand its 500 plus person workforce in India, hiring across domestic and global product functions.
O’Loghlen emphasized Coinbase’s goal to be a trusted and user-friendly exchange, stating:
CoinLaw’s Takeaway
I think Coinbase’s return to India is one of the most calculated and promising comebacks we’ve seen in the crypto world. In my experience, a clean slate approach shows serious intent. The fact that Coinbase took the time to register with the FIU and is working around tough regulations instead of avoiding them speaks volumes. India is a complex but massively important market, and this relaunch looks smarter and better prepared than before. If the company pulls off its 2026 fiat roadmap, it could regain a huge user base and set the tone for how global exchanges reenter regulated markets.
