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Coinbase's resurgence in India is making waves. However, the more significant narrative revolves around the other players who are subtly entering the scene, and how the nation's unclear regulations are beginning to feel less like an obstacle and more like an opportunity for growth.
At India Blockchain Week, Coinbase's Asia-Pacific director John O'Loghlen not only used the nebulous term "North Star" to describe India; he meant it.
He had some important strategic news to share about the world's most-watched cryptocurrency exchange and why the timing was right.
It was a calculated move for Coinbase to return to the Indian market after a three-year absence. Registration with India's Financial Intelligence Unit (FIU) was gained by the exchange in early 2025. By October, user registrations were reopened, and by December, the exchange had fully established its services for retail investors in the nation.
To traders' delight, the recently announced IMPS-enabled INR deposit capability now makes it possible for compliant Indian rupees to join the crypto ecosystem, a long-awaited milestone.
However, viewing this solely as a retail narrative would overlook the significant transformation that is subtly taking place: substantial institutional capital is now approaching India's digital asset market with a level of seriousness previously unseen.
Institutional Pivot
Throughout much of India's cryptocurrency journey, the involvement of institutions remained a concept for the future. Organized allocation by experts was not desirable because to the 30% flat tax on gains, 1% tax deducted at source (TDS) on all transactions, and almost complete lack of regulation.
The numbers were leaked overseas.
Platforms beyond the reach of Indian regulations have attracted volumes that ideally should have remained within the domestic market.
That arithmetic is gradually evolving, not due to a reduction in taxes, but because the global institutional landscape has transformed significantly, generating pressures that domestic uncertainties can no longer completely accommodate.
Worldwide, institutional investors held 65% of the cryptocurrency market by mid-2025, with total digital asset management assets exceeding $235 billion.
The integration has been solidified. By the end of 2025, spot Bitcoin exchange-traded funds had accumulated assets of more than $115 billion, with $75 billion held by BlackRock's IBIT and $20 billion by Fidelity's FBTC.
Pension funds, family offices, and asset managers seeking a regulated entry point into the digital asset market contributed to this inflow of cash.
Watching with great interest are the Indian institutional actors. Many Indian family offices are investing in domestic exchanges like CoinDCX, CoinSwitch, Mudrex, and ZebPay, and they tend to favor well-established blue-chip tokens like Bitcoin and Ethereum.
The approach is deliberate and systematic: institutions on platforms like Mudrex are primarily investing in four cryptocurrencies: Bitcoin, Ethereum, Solana, and XRP. Almost 70% of their activity is in Bitcoin, Ethereum, and Solana together.
Asset managers and hedge funds are among the institutional investors that are seeing the long-term worth of cryptocurrency and are adding it to their portfolios as a way to hedge against inflation and market volatility.
Crypto investing specialists include family offices, hedge funds, and VC firms. Currently, transactions are usually carried out via over-the-counter desks or structured products, resulting in minimal traces on exchange order books. However, the purpose is evident, and the framework to support them is currently being developed.
Coinbase has a keen understanding of this market segment. O'Loghlen's remarks about India highlighted both retail and institutional opportunities simultaneously, a deliberate choice.
Before committing substantial capital, serious investors require the exchange's first-rate custody infrastructure and compliance framework.
Green Shoots in the Policy Thicket
To put it mildly, the regulatory environment around digital assets in India is unclear.
As an institution, the Reserve Bank of India has always been cautious. In June 2025, Governor Sanjay Malhotra stated, "There is no new development regarding crypto," with the RBI's continued concern that cryptocurrency "can undermine financial stability and monetary policy" bearing fruit.
A government paper from September 2025 made the bold claim that crypto regulation might provide it with "legitimacy" and make the sector "systemic"—a way of putting it that emphasised how far the central bank still is from the position adopted by its international peers.
However, a change is taking place. In order to discuss market regulation, prominent cryptocurrency exchanges met in New Delhi with India's Parliamentary Standing Committee on Finance.
Government officials from the Finance and Corporate Affairs ministries were present at the meetings, which also included Binance, WazirX, ZebPay, CoinDCX, and CoinSwitch.
After receiving formal proposals from a group of prominent Web3 and digital asset representatives advocating for regulations that foster innovation, the committee previously chose "A Study on Virtual Digital Assets and Way Forward" as the topic for in-depth analysis.
Their goal is to unleash a $100 billion Web3-driven economy by 2035.
O'Loghlen singled out this kind of legislative action as a key marker. "We see that as green shoots," he noted, "a nice inclusion of commentary on various digital assets, which hasn't happened before. It gives us confidence and a belief that there will be a regulatory roadmap and a framework that's being considered."
Parliamentary committees' present deliberate engagement of business participants marks a significant change in the discourse, especially for an exchange that had before withdrew from India as a result of informal pressure from the central bank.
So far, the COINS Act 2025's proposed creation of a crypto asset regulating body has remained a pipe dream.
The Income Tax Department, the Reserve Bank of India, and the Financial Intelligence Unit all operate autonomously, leading to overlapping duties because there is no dedicated regulating body in place.
But fractured does not mean hostile. Institutional investors are carefully considering their entrance timings, and this difference is crucial.
The Compliance Bet
Since compliance is at the heart of Coinbase's strategy in India, the exchange that takes the lead in creating a genuine and regulatory-friendly presence should now be in a strong position to take the lead once the framework is fully in place.
By proactively aligning with PMLA requirements, the exchange was able to avoid the penalties that non-compliant competitors faced.
It smartly invested in CoinDCX, obtaining access to 20.4 million users and a considerable yearly trading volume, all while leveraging local experience to efficiently handle regulatory difficulties.
While 25 platforms were subject to limitations for failing to comply, Coinbase was left unscathed.
That unique selling point is attractive to institutional buyers who are trying to stay out of regulatory hot water and to employees inside the company as a whole.
The digital asset market in India exploded in 2025 due to the country's young, tech-savvy population and a staggering 300 billion rupees in transactions (a rise of 80% year-over-year) between January and July.
Projections by 2034 show the cryptocurrency industry in India would have grown from its 2025 valuation of $3 billion to a whopping $14 billion, a solid compound annual growth rate of 18.66%.
Disregarding these figures, despite any temporary regulatory challenges, will not assist institutions in accurately assessing their exposure to emerging markets in the long term.
In the 2025 global crypto adoption rating by Chainalysis, Pakistan and the US secured the second and third positions, respectively, following India.
Prior to engaging with digital assets, India did not hesitate for regulations to be well-defined.
It is immersing itself, deeply and passionately, but mostly without the infrastructure that would allow bigger financial companies to move forward with certainty.
Coinbase has activated IMPS integration, which is a big part of that infrastructure.
The lack of a reliable, compliant fiat entry point for retail and institutional users in India is a specific, real problem that it seeks to solve. It is more than just a trait; it is an obvious indicator.
What Comes Next
There is a growing chorus of voices urging India to expand its current framework beyond its current tax-centric focus to incorporate consumer protection, uniform disclosures, onshore compliance procedures, licensing, and more.
In order to attract institutional capital and promote safer participation, these adjustments are considered crucial.
There is a restricted amount of time to strike a balance between regulatory innovations and institutional durability, but the data suggests that we should stay involved and keep evolving for the time being.
For Coinbase, India represents a market with strong fundamentals that can withstand short-term uncertainties.
With over 107 million active users in the virtual digital asset space, a leading global developer community, and a demographic profile that aligns perfectly with a sustainable long-term investor base, the rationale behind O'Loghlen's "North Star" language is rooted in strategy rather than mere rhetoric.
The focus is shifting from if to when it comes to India for institutional investors, such as family offices in India, global hedge funds looking to diversify into emerging markets, and asset managers considering how to best take advantage of cryptocurrency's growing importance.
The legislative body is getting together for a meeting.
International exchanges are now being registered by the FIU, and the IMPS rails are live now.
There is still a lack of organization despite the early indications of progress. Nevertheless, these are quite than enough to start the initial large money covertly aligning.
