After a hiatus spanning over two years, the cryptocurrency exchange Coinbase has reopened its app for user registration in India. Users can now engage in crypto-to-crypto trades. During the India Blockchain Week (IBW), John O’Loghlen, Coinbase’s APAC director, announced future plans to introduce a fiat on-ramp in 2026, enabling users in India to convert traditional currency to purchase cryptocurrencies.
Coinbase initially launched its services in India in 2022 but faced immediate challenges. Just days into operations, the platform had to suspend support for the Unified Payments Interface (UPI) due to the National Payments Corporation of India (NPCI) not recognizing Coinbase’s presence in the market. By 2023, the exchange ceased operations entirely for Indian users, advising them to liquidate their accounts.
O’Loghlen emphasized the company’s historical engagement with millions of Indian customers and the decision to completely off-board them in order to reset its operations in the country. “As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so you know it wasn’t without some hesitation,” he remarked.
Following these setbacks, Coinbase began dialogues with the Financial Intelligence Unit (FIU), the government agency managing transactions and fraud oversight. After achieving registration with the FIU earlier this year, Coinbase started onboarding users with an early access program in October, which has now expanded to all users.
As the world’s second-largest online user base, India has drawn many internet companies seeking growth. However, cryptocurrency firms face significant hurdles due to stringent regulations and taxation policies. India imposes a 30% tax on cryptocurrency income without allowing loss offsets and a 1% tax on each transaction. O’Loghlen expressed hope for a relaxation of these tax burdens, believing it could encourage greater participation in the digital asset space.
Despite the regulatory landscape, Coinbase remains optimistic about its prospects in India. The company’s venture arm has invested in local exchange CoinDCX, valuing it at $2.45 billion post-money. Furthermore, Coinbase plans to expand its presence in India by adding to its workforce of over 500 employees, focusing on both domestic and global markets.
“We want to be known as that trusted exchange,” O’Loghlen stated, highlighting the importance of ensuring user funds are safe. He added that for Coinbase to reach a broader audience, it must provide an interface that allows users to onboard seamlessly, akin to popular platforms like Zepto or Flipkart.
