The wait is finally over for millions of crypto enthusiasts in India. Coinbase has officially announced its return to the Indian market after a messy exit two years ago. The US based exchange is now live for local users with a fresh regulatory status.
But there is a major twist in their comeback plan that traders need to know. While you can sign up today, the full experience involving direct rupee transfers will take a bit longer to arrive.
A Strategic Return to the Indian Market
Coinbase is not just testing the waters this time. The company has formally registered with the Financial Intelligence Unit or FIU in India. This move marks a massive shift from their previous attempt to crack the Indian market.
John O’Loghlen serves as the APAC director for the company. He broke this news during the recent India Blockchain Week. He admitted that leaving the country previously was a painful business decision.
The platform has now reopened its app for Indian residents to download and register.
This means you can create an account right now. You can log in and view the interface. However, the services available at this moment are limited compared to what global users enjoy.
The focus right now is on getting the foundation right. The company wants to ensure they are 100% compliant with local laws before opening the floodgates. This cautious approach is a direct result of the regulatory heat they faced in the past.
Here is what the current status looks like for Indian users:
- Registration: Open for all Indian residents.
- Compliance: Fully registered with the FIU to prevent money laundering.
- Trading: Crypto-to-crypto trading is active.
- Banking: Direct bank transfers are not yet enabled.
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Coinbase app smartphone screen India map background
The Long Wait for Rupee Deposits
The biggest question on everyone’s mind is about money deposits.
Most traders want to use their bank accounts to buy Bitcoin or Ethereum. This feature is known as a fiat on-ramp. O’Loghlen was very clear that this specific service will launch in 2026.
This two year timeline might seem long to some active investors. But the company is playing the long game to avoid past mistakes.
In 2022, the exchange tried to launch with support for the Unified Payments Interface or UPI. That attempt collapsed within days. The body governing UPI payments stated they were not aware of any such support.
It forced the exchange to halt operations. By 2023, they had to offboard all local customers and stop their services entirely.
The company is now rebuilding its payment infrastructure from scratch to ensure total compliance.
This delay allows them to partner with local banks properly. They want to ensure that when they switch on rupee deposits in 2026, it stays on for good. Until then, users may need to rely on other methods or transfer existing crypto assets to the platform.
Navigating High Taxes and Strict Rules
India is known for having some of the toughest crypto tax laws in the world.
The government views digital assets with a lot of caution. This regulatory environment makes it hard for foreign exchanges to operate freely. Coinbase is fully aware of these challenges as they re-enter the space.
Current tax laws in India include:
| Tax Type | Rate | Impact on Traders |
|---|---|---|
| Capital Gains | 30% | Flat tax on all profits without loss offsets. |
| TDS | 1% | Deducted on every sell transaction. |
| Loss Set-off | 0% | Losses cannot reduce your tax liability. |
O’Loghlen spoke candidly about these rules. He agreed that the current structure discourages active day trading. The one percent TDS locks up capital and reduces liquidity in the market.
However, he remains optimistic about the future.
He hopes that lawmakers will eventually ease these burdens. The goal is to incentivize long term holding of assets rather than quick speculation. The company plans to work with regulators to help shape a more friendly ecosystem.
Despite these taxes, Indian users have shown resilience. They continue to trade and invest in digital assets at high volumes. This proves that the demand is strong enough to withstand strict fiscal policies.
Betting Big on Local Talent and Startups
Coinbase is doing more than just offering a trading platform.
The company has deep roots in the Indian technology sector. They view India as a hub for engineering talent and Web3 innovation. This perspective drives their investment strategy in the region.
The exchange has already invested heavily in local players. A prime example is their backing of CoinDCX.
CoinDCX is one of the largest local exchanges in the country. The investment helped push its valuation to over $2.45 billion. This shows that the US giant is willing to support the local ecosystem even while building its own rival platform.
“I think we want to be known as that trusted exchange, ensure that your funds are safe with us.”
This quote from the APAC director highlights their core mission. They want to be the safe harbor in a volatile market.
Currently, the company employs over 500 people across India.
These employees work in vital roles. They handle engineering, product development, and customer support. The plan is to hire even more talent to support the global and local operations.
This large workforce gives them a significant advantage. They have people on the ground who understand the local culture and the complex payment landscape. It is not just a remote operation running from the United States.
Why India Matters for Global Crypto
You might wonder why a company would go through so much trouble.
The answer lies in the sheer size of the Indian market. India is a powerhouse when it comes to grassroots crypto adoption.
According to reports by firms like Chainalysis and TRM Labs, India consistently ranks at the top. It has beaten developed nations like the US and the UK in terms of adoption volume. The user base here is young, tech-savvy, and eager to explore decentralized finance.
Ignoring India is not an option for any global leader.
The potential for growth is massive. Even with a small percentage of the population investing, the numbers run into millions of users. The return of a major player like this signals that the Indian market is maturing.
It is no longer the Wild West of unregulated trading. With FIU registrations becoming the norm, the sector is becoming safer for common investors.
The company is positioning itself to capture this growth in the next decade. The 2026 target for rupee services fits this long term vision. They are preparing for a future where crypto is a standard part of an investment portfolio.
For now, the door is open. You can walk in, look around, and get ready for the full experience that is coming soon.
Summary
Coinbase has officially returned to India after registering with the FIU. While users can sign up and trade crypto pairs now, direct rupee deposits and withdrawals will not launch until 2026. The company is taking a cautious approach to avoid the regulatory issues that caused its exit in 2023. They are also committed to the local market through investments in startups like CoinDCX and by maintaining a large workforce of over 500 employees in the country. This return validates India’s position as a critical player in the global crypto economy.
We would love to hear your thoughts on this comeback. Do you think the 2026 timeline is too far away? Share your opinion in the comments below. If you are discussing this on X or Instagram, use the hashtag #CoinbaseIndia to join the conversation with other traders.
