Coinbase India Relaunch: Exchange Returns After Two-Year Hiatus with New Strategy

Crypto exchange Coinbase has officially reopened for users in India. The platform resumed operations after a regulatory pause lasting over two years. The move marks a significant strategic shift for the company in a challenging market.According to TechCrunch, the app is now open for general registration. Initially, users can only conduct crypto-to-crypto trades. The company’s leadership has confirmed plans to introduce a crucial fiat currency gateway next year.

Navigating Regulatory Hurdles and a Clean Slate Approach

Coinbase first launched services in India in early 2022. That launch was quickly derailed. The National Payments Corporation of India (NPCI), which operates the popular UPI network, did not acknowledge the exchange’s presence.This forced Coinbase to disable UPI payments within days. By 2023, the company off-boarded all existing Indian users from its international entities. It asked them to withdraw their funds entirely.John O’Loghlen, Coinbase’s APAC Director, explained the drastic move. He said the company wanted a “clean slate” for its new India push. He admitted it was a difficult commercial decision to let millions of customers go.The path back involved direct engagement with Indian regulators. The company registered with the Financial Intelligence Unit (FIU) earlier this year. This registration was a key step toward regulatory compliance.

Facing Market Challenges and Building for the Future

India represents a massive opportunity with its huge online population. However, its crypto environment is notoriously tough. The government imposes a 30% tax on crypto profits with no loss offset.There is also a 1% tax deducted at source on every transaction. O’Loghlen expressed hope that these tax rules would be relaxed. He argued the current regime discourages frequent trading and long-term holding.Despite the hurdles, Coinbase is investing heavily. Its venture arm participated in a funding round for local exchange CoinDCX. The investment valued CoinDCX at $2.45 billion.The company also plans to expand its existing Indian team of over 500 employees. O’Loghlen stated the goal is to become a trusted, mainstream platform. He compared the desired user experience to popular Indian apps like Flipkart.

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The Coinbase India relaunch is a bold second attempt in a critical market. Its success will depend on navigating complex regulations and winning user trust in a competitive landscape.

Info at your fingertips

What can Indian users do on Coinbase right now?

Users can currently register and trade cryptocurrencies for other cryptocurrencies. They cannot yet use Indian rupees (INR) to directly buy crypto on the platform. That fiat on-ramp service is planned for 2026.

Why did Coinbase leave India in 2023?

The exchange halted services after facing regulatory friction, particularly with the UPI payment network. It chose to off-board all users from its international platforms to start fresh with a locally compliant entity.

What are the main tax challenges for crypto in India?

India levies a flat 30% tax on all crypto income, with no option to offset losses from other investments. Additionally, a 1% Tax Deducted at Source (TDS) applies to every transaction, which dampens trading volume.

Is Coinbase investing in the Indian crypto ecosystem?

Yes. Coinbase Ventures recently invested more capital into the Indian exchange CoinDCX. This signals a long-term commitment to the region’s blockchain and crypto sector beyond its own platform.

How is Coinbase ensuring regulatory compliance this time?

The company engaged directly with the Financial Intelligence Unit (FIU) and completed its registration with the agency. This is a foundational step for operating a virtual digital asset service in India legally.