Coinbase Returns to India: Crypto Chaos or Calculated Move? 🤔

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Coinbase, the Goliath of American crypto exchanges, has triumphantly (or perhaps cautiously) reopened its gates to Indian users after a two-year hiatus that felt like an eternity in the fast-paced world of digital currencies.

This grand return is the fruit of prolonged and arduous negotiations with Indian regulators. Despite the heavy tax burdens and bureaucratic hurdles, India’s appetite for digital assets continues to grow at a pace that would make even the most optimistic crypto enthusiast blush.

Coinbase’s Indian Odyssey: A Tale of Triumph and Tribulation

Coinbase first set foot in the Indian market in April 2022, eager to tap into a burgeoning crypto user base. However, the honeymoon was short-lived as regulatory storms brewed almost immediately.

The platform was forced to suspend support for the Unified Payments Interface (UPI) when the National Payments Corporation of India (NPCI) gave Coinbase the cold shoulder. By September 2023, Coinbase had ceased accepting new Indian sign-ups and politely asked existing users to withdraw their balances. It was a moment of reckoning, indeed.

Yet, like a phoenix rising from the ashes, Coinbase persisted in its quest to reestablish its presence in India. In February, whispers (courtesy of BeInCrypto) hinted that the exchange was actively collaborating with Indian regulators to harmonize with local compliance requirements.

According to TechCrunch, Coinbase began welcoming Indian users back in October through an early-access program. Now, app registration has been flung wide open, though Indian customers are still limited to crypto-to-crypto transactions. A small step for Coinbase, but perhaps a giant leap for Indian crypto enthusiasts.

During India Blockchain Week, Coinbase’s APAC director, John O’Loghlen, revealed that the company is gearing up to introduce a fiat on-ramp in 2026. This would allow users to add local currency and purchase cryptocurrency directly. A lofty goal, but one that Coinbase seems determined to achieve.

“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 [sic], have a clean slate here. 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,” O’Loghlen stated, with a hint of existential dread.

Coinbase’s reentry is not just about platform access. In October 2025, it announced a strategic investment in CoinDCX, one of India’s largest crypto exchanges, which boasts over 20.4 million users. A bold move, indeed.

Last week, Coinbase signed a memorandum of understanding with Karnataka’s state government to bolster the state’s blockchain ecosystem and technical capabilities. The partnership focuses on developer training, early-stage startup incubation, and public awareness initiatives. A nod to the future, perhaps.

Why the Crypto Titans Are Flocking Back to India

Coinbase is not alone in its renewed interest in India. Bybit has resumed operations after completing local registration requirements and paying a $1 million penalty. Binance also made its grand return last year after parting with a $2.2 million fine. It seems the price of admission to India’s crypto market is steep, but the potential rewards are enticing.

This renewed push to operate in India is particularly noteworthy given the country’s stringent tax regime. Crypto gains are taxed at a hefty 30%, and every transaction carries a 1% Tax Deducted at Source (TDS). Yet, India leads Asia-Pacific in crypto activity, a testament to the resilience and ingenuity of its crypto community.

“India, the largest at $338 billion, blends grassroots adoption with structural gaps in finance: a large diaspora has remittance needs, young adults are using crypto trading as a supplementary income, and fintech rails like UPI and eRupi accelerate usage,” Chainalysis highlighted, painting a picture of a market brimming with potential.

Thus, while India’s regulatory environment remains a formidable challenge, the renewed interest from Coinbase, Binance, Bybit, and others underscores the market’s long-term potential. With strong grassroots adoption and ongoing government engagement, India is positioning itself as a central hub for digital asset innovation in the Asia-Pacific region. A beacon of hope or a cautionary tale? Only time will tell.

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2025-12-08 12:52