QUICK MARKET SNAPSHOT COINBASE RELAUNCH IN INDIA
• Service Status (Dec 2025): Crypto-to-crypto trades enabled
• Fiat On-Ramp Target: Early 2026
• Regulatory Step: Registered with India’s Financial Intelligence Unit (FIU) 2025
• Previous Exit: 2023 due to UPI regulatory pressure
• Key Markets Impacted: 150M+ internet users, high retail demand potential
• Risk Factors: Indian crypto tax regime, UPI/payment integration, regulatory uncertainty
Coinbase Restarts in India What It Means for Crypto Adoption
After a more than two-year hiatus, Coinbase has reopened user registration in India allowing crypto-to-crypto trades once again. The move, announced during India Blockchain Week, marks a major moment for a country long on the cusp of mainstream crypto adoption.
The company says a full fiat on-ramp letting users fund accounts in Indian rupees is slated for 2026. For millions of potential users in India, today’s reopening could signal the return of a regulated gateway to global crypto markets.
What’s Happened So Far
- Coinbase originally entered India in 2022, offering UPI-based payments. The service was halted shortly after when India’s UPI regulator declined to recognise Coinbase’s operations. By 2023, the exchange had fully suspended its India services and asked users to off-board.
- In 2025, Coinbase secured registration with India’s Financial Intelligence Unit (FIU), clearing a key hurdle for compliance under local anti-money laundering regulations.
- Starting around October, Coinbase began onboarding users in “early access.” As of December 2025, registration is open to all Indian users but only crypto-to-crypto trading is live.
- At an event during India Blockchain Week, Coinbase’s APAC lead said the company plans to roll out fiat deposit and INR payment support “sometime in 2026.
Why This Matters for India’s Crypto Ecosystem
Broad User Reach
India remains one of the largest untapped crypto markets, with hundreds of millions of internet users and growing interest in digital finance. Coinbase’s return could bring a trusted, global exchange to local users potentially increasing retail adoption significantly.
Regulatory Legitimacy
By securing FIU registration, Coinbase signals compliance with Indian anti-money-laundering norms. For many users and institutions wary of offshore exchanges, this could improve trust and encourage on-chain activity from within India.
Restored Payment Infrastructure (Soon)
The planned fiat on-ramp would allow Indian users to fund accounts in rupees removing friction associated with foreign remittances or third-party on-ramps. If successful, it might rival local exchanges and streamline crypto access.
Market & Liquidity Impacts
More Indian users especially first-time buyers could increase demand and liquidity, potentially boosting local on-chain volumes, trading pairs, and indirectly influencing global crypto flows.
What Could Still Go Wrong Key Challenges
- Regulatory & Tax Uncertainty: India’s crypto tax regime remains complex — a flat 30% tax on crypto gains plus 1% TDS could deter frequent trading or long-term holding.
- Payment Infrastructure Risks: Previous UPI-based onboarding was blocked by the country’s payments authority. Fiat on-ramp success depends on payment-network clearance and compliance with local banking/AML rules.
- User Risk & Volatility: New users might face volatility, limited rupee-on/off-ramp liquidity, or difficulty in fiat withdrawals during periods of market stress.
- Competitive Pressure: Local exchanges (with INR pairs and local compliance) remain strong Coinbase must compete on cost, user experience, and trust.
Conclusion
Coinbase’s re-entry into India is a major development for the country’s crypto ecosystem. By reopening registrations now and committing to a 2026 fiat on-ramp Coinbase is betting on renewed demand and growing regulatory clarity in India.
If execution succeeds, this could dramatically expand crypto access for millions of Indians. But whether Coinbase’s comeback delivers long-term traction will depend heavily on regulatory clarity, payment-rail support, and local market conditions.
