After more than two years of inactivity, cryptocurrency exchange Coinbase has reopened its registration app in India. Currently, users can engage in crypto-to-crypto trading; however, during the India Blockchain Week (IBW), John O’Loghlen, Coinbase’s APAC director, announced plans for a fiat on-ramp set to launch in 2026, enabling Indian users to deposit funds and purchase cryptocurrencies.
Coinbase’s Journey in India
Coinbase initially launched its services in India in 2022, but had to quickly suspend support for the Unified Payments Interface (UPI) payment system after the National Payments Corporation of India (NPCI) refused to acknowledge Coinbase’s operations within the country. In 2023, the platform ceased all services for Indian users, urging them to liquidate their accounts.
Strategic Shift and Regulatory Engagement
“We had millions of customers historically in India, and we made a decisive choice to off-board those customers entirely from overseas entities for regulatory compliance. Our goal was to start fresh,” O’Loghlen explained. He acknowledged the commercial risks of such a move but emphasized the necessity of a clean slate.
Collaboration with Indian Authorities
The company began to collaborate with the Financial Intelligence Unit (FIU), the government body responsible for overseeing transactions and preventing fraud, and successfully registered with them this year. In October, Coinbase initiated user onboarding through early access, and the app is now available to all users.
Challenges in India’s Crypto Market
Numerous internet companies are establishing their presence in India, aiming to capture a share of the world’s second-largest online user base. While social media and AI companies like OpenAI have experienced swift growth, crypto firms face significant hurdles due to stringent regulations and taxation policies surrounding digital currencies.
Taxation Concerns
India imposes a hefty 30% tax on crypto earnings without any provision for loss offsets, along with a 1% tax deduction on each transaction, which may deter frequent trading. O’Loghlen expressed hope that the government would consider easing these tax burdens to facilitate digital asset ownership.
Future Prospects for Coinbase in India
Despite the regulatory challenges, Coinbase remains optimistic about its future in India. The company’s venture division has invested significantly in local exchange CoinDCX, which is valued at $2.45 billion. Additionally, Coinbase plans to expand its workforce in India, currently exceeding 500 employees, by hiring for various roles that cater to both local and international markets.
Building Trust with Users
“Our aim is to establish ourselves as a trusted exchange, ensuring the safety of your funds,” O’Loghlen stated. “To reach the masses, we need an intuitive user interface and a reliable experience that enables quick onboarding, akin to using popular apps like Zepto or Flipkart in India.”
