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Coinbase has resumed onboarding users in India after more than two years, marking the cryptocurrency exchange's return to a market it exited in 2023 following regulatory disputes over payment infrastructure.
The exchange is now allowing new registrations and crypto-to-crypto trading, with plans to reintroduce fiat on-ramp services next year, APAC director John O'Loghlen said at India Blockchain Week last week, according to CoinDesk reporting on Monday.
The return follows a prolonged standoff that began in 2022 when Coinbase launched in India with support for the Unified Payments Interface but withdrew the feature within days after the network operator declined to acknowledge the exchange. Coinbase subsequently halted services entirely, off-boarded millions of Indian users and closed local access while reassessing its regulatory position.
O'Loghlen said the company adopted a "clean slate" approach and engaged directly with the Financial Intelligence Unit, the agency responsible for monitoring digital asset transactions, according to CoinDesk. Coinbase completed FIU registration earlier this year and began admitting users through an early-access program in October. The platform is now broadly accessible, though trading remains limited to crypto pairs until fiat infrastructure returns.
India presents significant operational challenges for exchanges due to a 30% flat tax on crypto gains, prohibition on offsetting losses, and a 1% transaction levy that has suppressed trading volumes.
Despite regulatory headwinds, Coinbase continues expanding its India presence. The company's venture arm recently increased its stake in local exchange CoinDCX at a $2.45 billion valuation, and Coinbase said it plans to grow its India workforce beyond 500 employees across domestic and global product lines.
The reopening comes as Coinbase maintains its compliance-focused strategy in the market, having previously backed CoinDCX since 2020 as part of its broader India investment thesis.
