Coinbase officially resumed India operations in December 2025 after securing FIU registration, offering crypto-to-crypto trading with plans for fiat on-ramp services in 2026.
Coinbase’s Strategic Return to the Indian Market
Coinbase, the Nasdaq-listed cryptocurrency exchange, officially resumed operations in India in December 2025 after more than two years of absence from the market. The US-based platform now accepts new user registrations and facilitates crypto-to-crypto trading following successful engagement with Indian financial regulators and compliance with anti-money laundering (AML) frameworks. This reentry positions Coinbase to compete in one of the world’s largest potential crypto markets, despite stringent tax policies and regulatory oversight.
Regulatory Approval and FIU Registration
The cornerstone of Coinbase’s return is its registration with India’s Financial Intelligence Unit (FIU-IND), secured in March 2025. The FIU operates under the Ministry of Finance and enforces compliance with the Prevention of Money Laundering Act (PMLA). This registration is mandatory for all virtual digital asset service providers operating in India and enables Coinbase to legally offer cryptocurrency trading services while meeting AML and counter-terrorism financing (CTF) requirements.
Coinbase joins other major exchanges including Binance, Kraken, and KuCoin that obtained similar registrations after India intensified regulatory scrutiny of crypto platforms in 2023 and 2024. The approval process required extensive documentation, KYC protocol implementation, and demonstration of robust compliance infrastructure.
Phased Launch Strategy: Early Access to Full Operations
Coinbase implemented a staged rollout approach. The company initiated an early access program in October 2025, allowing select users to test the platform before broader market availability. This limited beta phase enabled Coinbase to validate technical infrastructure, refine user experience, and ensure regulatory alignment before scaling operations.
Full public access launched in December 2025, coinciding with announcements made at India Blockchain Week. John O’Loghlen, Coinbase’s Asia-Pacific Regional Managing Director, confirmed that the exchange currently supports crypto-to-crypto transactions, with plans to reintroduce fiat currency on-ramp services (INR deposits and withdrawals) in 2026.
Investment in CoinDCX and Market Positioning
Parallel to its direct market reentry, Coinbase’s venture capital arm increased its investment in CoinDCX, India’s largest domestic cryptocurrency exchange, at a post-money valuation of $2.45 billion in October 2025. This funding round, subject to regulatory approvals, represents an extension of CoinDCX’s previous capital raise and strengthens Coinbase’s strategic foothold in the Indian ecosystem.
The investment signals a dual approach: competing directly through its own platform while maintaining exposure to established local players with deeper market penetration and regulatory relationships. CoinDCX holds significant market share among Indian retail crypto investors and has navigated domestic compliance requirements since inception.
Previous Exit and UPI Payment Restrictions
Coinbase originally launched Indian services in April 2022, leveraging the Unified Payments Interface (UPI) for seamless rupee deposits. However, operations were disrupted when the National Payments Corporation of India (NPCI) clarified in April 2022 that crypto exchanges were not authorized to use UPI rails for virtual asset transactions.
This regulatory intervention effectively eliminated the most accessible payment method for Indian retail investors, forcing Coinbase to suspend new user registrations in June 2023 and eventually withdraw from the market. The UPI restriction remains in effect, explaining why the current relaunch focuses on crypto-to-crypto trading rather than direct fiat onboarding.
Workforce Expansion Despite Regulatory Challenges
Coinbase has expanded its India-based workforce to over 500 employees, spanning both domestic market operations and global product development teams. This hiring trajectory continues despite India’s challenging tax environment for cryptocurrency transactions, which includes a flat 30% income tax on gains from virtual digital assets and a 1% tax deducted at source (TDS) on every transaction.
These tax policies, implemented in the 2022 Union Budget and enforced from April 2022, have significantly reduced trading volumes across Indian exchanges. The 1% TDS applies cumulatively to both buy and sell transactions, creating friction for active traders and high-frequency strategies. Coinbase’s decision to maintain substantial Indian operations indicates confidence in long-term market growth despite near-term headwinds.
Industry Context and Competing Platforms
Coinbase reenters a market landscape transformed by regulatory evolution and consolidation. Domestic platforms like WazirX, CoinSwitch, and ZebPay compete alongside international operators that secured FIU registrations. The Reserve Bank of India (RBI) has maintained a cautious stance on cryptocurrencies, repeatedly expressing concerns about financial stability risks while stopping short of an outright ban.
The Securities and Exchange Board of India (SEBI) is expected to assume regulatory oversight for crypto assets, though formal frameworks remain under development. This regulatory uncertainty contrasts with clearer guidelines in markets like the European Union (MiCA framework) and Singapore (Payment Services Act).
Fiat Integration Timeline and Technical Challenges
Coinbase’s stated 2026 target for fiat on-ramp services depends on resolving payment infrastructure constraints. With UPI unavailable, alternatives include bank transfers via NEFT/RTGS, payment gateway integrations, or partnerships with licensed payment aggregators willing to service crypto exchanges.
Some Indian exchanges have maintained limited fiat functionality through banking relationships that survived earlier regulatory crackdowns, but access remains inconsistent. Coinbase’s scale and compliance profile may facilitate negotiations with banking partners, though conservative risk policies at major Indian banks continue to restrict crypto-related accounts.
Key Takeaways for Indian Crypto Investors
Coinbase’s return validates India’s strategic importance in the global crypto ecosystem despite regulatory friction. The exchange offers institutional-grade security, a broad selection of tradable assets, and compliance infrastructure that appeals to investors prioritizing regulatory alignment over trading fees or local payment convenience.
However, the absence of immediate fiat on-ramp means users must acquire cryptocurrency through other channels before accessing Coinbase’s platform. The 30% tax and 1% TDS remain applicable regardless of exchange choice, impacting overall return calculations for Indian traders.
Outlook: Regulatory Evolution and Market Growth
India’s crypto regulatory framework continues to evolve. The government has resisted blanket prohibitions while implementing tax measures that generate revenue and create transaction transparency. Future developments may include clearer licensing categories, consumer protection standards, and potential SEBI oversight mechanisms.
Coinbase’s commitment to the Indian market—evidenced by FIU compliance, workforce investment, and CoinDCX backing—suggests institutional confidence in eventual regulatory stabilization. The exchange’s 2026 fiat integration timeline aligns with expectations for incremental policy clarity as India balances innovation promotion with financial stability concerns.
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