Coinbase Restarts Services in India with Plans to Enable Fiat Transactions by 2026
Following a pause lasting over two years, coinbase has reopened its app registration for users across India. At present, the platform facilitates only crypto-to-crypto trades. However, during India Blockchain Week (IBW), Coinbase’s APAC director John O’Loghlen announced intentions to launch a fiat on-ramp by 2026, allowing indian customers to deposit rupees and buy cryptocurrencies directly within the app.
Regulatory Setbacks and Initial Market Exit
Coinbase first entered the Indian market in 2022 but soon faced meaningful regulatory obstacles.Shortly after launching, it was forced to suspend support for Unified Payments Interface (UPI) transactions because the National Payments Corporation of India (NPCI) did not authorize their use. This regulatory impasse compelled Coinbase to cease all operations for Indian users by mid-2023 and advise them to withdraw their assets promptly.
A Deliberate Strategic Withdrawal
O’Loghlen explained that Coinbase intentionally offboarded millions of Indian customers who were connected through overseas entities under foreign regulations. “We chose to start anew-essentially severing old ties-to establish a fully compliant presence within India,” he stated. Although this move was commercially challenging given their significant user base,it was deemed essential for sustainable growth in the long term.
Renewed Collaboration with Regulators and Gradual User Reintroduction
This year marked a pivotal shift as Coinbase engaged closely with India’s Financial Intelligence Unit (FIU), which oversees financial compliance and fraud prevention. After successfully registering with FIU, Coinbase began onboarding select users via early access programs starting october 2024; currently, its app is available nationwide.
The Promise and Challenges of India’s Digital Boom
India now boasts more than one billion internet users as of mid-2024,ranking among the world’s largest digital economies. While sectors such as social media platforms and artificial intelligence have seen rapid expansion-illustrated by companies like Google DeepMind increasing investments-the cryptocurrency industry continues facing stringent regulations coupled with heavy taxation policies that hinder growth.
- Taxation Effects: The government enforces a flat 30% tax on crypto profits without permitting losses from previous trades to offset gains.
- TDS Requirements: Additionally, there is a mandatory 1% Tax Deducted at Source (TDS) on every crypto transaction which discourages frequent trading among retail investors.
Citing these hurdles, O’Loghlen expressed optimism that future policy reforms could reduce tax pressures on digital asset holders and encourage wider adoption across diverse segments of society.
Nurturing Expansion: Investments and Workforce Growth
Aiming beyond direct exchange services alone, Coinbase’s venture capital division recently boosted investment into WazirX-a leading local cryptocurrency exchange valued at approximately $2.5 billion-to deepen ecosystem partnerships within India’s rapidly growing market.
The company also plans substantial recruitment efforts targeting over 500 employees locally in order to support both domestic operations and global projects from this strategic hub in India.
Pursuing Trust Through Superior User Experience
“Our ambition is to become India’s moast trusted crypto exchange,”
“ensuring user funds are safeguarded while providing an onboarding experience as seamless as top-tier apps like Swiggy or Amazon,”
“as mass adoption here depends on combining ease-of-use with strong security measures.”
O’Loghlen emphasized these principles as foundational pillars driving their renewed commitment toward building confidence among Indian users.
