Coinbase has begun accepting new registrations in India again, setting the stage for a more deliberate return to a market it abruptly left two years ago.
The exchange is allowing crypto-to-crypto trading for now while it prepares the infrastructure and regulatory groundwork needed for rupee support, a feature it expects to introduce in 2026.
Coinbase launched in India in 2022 with support for the country’s Unified Payments Interface, a crucial payments rail. Days later, the national payments authority distanced itself from the rollout, which effectively blocked rupee deposits. The service lingered with limited functionality until 2023, when Coinbase shut down local access entirely and instructed Indian users to close their accounts.
The company’s APAC director, John O’Loghlen, described that departure as a “clean slate” moment meant to avoid carrying over compliance baggage from its earlier setup.
“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,” O’Loghlen said.
A cautious re-entry built around compliance
This new attempt shows a different posture. Coinbase secured registration with India’s Financial Intelligence Unit in early 2025, which signals its willingness to follow domestic oversight rather than rely on offshore entities. The company also tested the waters quietly with an early-access program in October, inviting a limited group of users to trial the rebuilt interface and onboarding flow.
Crypto-to-crypto trading is available immediately, but rupee deposits will wait until Coinbase completes additional regulatory steps and finalizes its local partnerships. The platform’s India marketing lead, Karan Malik, said the focus has been on creating a product that feels reliable and familiar to people who expect a streamlined experience similar to major Indian apps.
“Last year, I was leading the charge and building the marketing and brand playbook for IBW. This year, I’m bringing Coinbase to the party,” Malik said.
Political groundwork and local partnerships
Coinbase has spent the past year rebuilding relationships with Indian policymakers. Its international policy adviser, Katie Mitch, recently met with the Parliamentary Standing Committee on Finance to discuss virtual digital asset regulation.
In Karnataka, one of India’s leading tech hubs, the state’s IT minister signed a cooperation agreement with Coinbase to support blockchain development, incubation programs, and security research.
The exchange has also continued investing in the broader ecosystem. Coinbase Ventures recently backed CoinDCX at a multibillion-dollar valuation, signaling a belief that Indian exchanges play a crucial role in navigating domestic rules. The company is hiring widely as well, expanding its India workforce beyond 500 employees and assigning many of those roles to global product teams.
Navigating a difficult regulatory climate
Even with new partnerships, Coinbase must operate within one of the world’s strictest tax regimes for digital assets. India imposes a 30% flat tax on gains and a 1% deduction on every trade, with no provision to offset losses. This framework has slowed trading activity nationwide and pushed some users toward low-volume offshore platforms. Coinbase has not outlined specific lobbying goals, but O’Loghlen said the company hopes the tax structure becomes less burdensome over time.
The absence of fiat trading will limit growth in the near term. Allowing users to convert rupees directly into crypto is essential for broad adoption, and Coinbase knows that its 2026 target must hold if it wants to regain its previous user base. India was once one of its largest global markets, with millions of active accounts. Winning back that scale will require trust, local compliance, and reliable payments support areas where the company stumbled before.
Tanya Petrusenko
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