Coinbase Relaunches in India After Hiatus
After being inactive for over two years, Coinbase has reopened its app for registration in India. Currently, users can trade between various cryptocurrencies. During the India Blockchain Week, John O’Loren, the APAC Director for Coinbase, mentioned plans to introduce a fiat onramp in 2026, enabling Indian users to use local currency to purchase cryptocurrencies.
Coinbase initially entered the Indian market in 2022 but quickly halted support for the Unified Payments Interface (UPI) payment network just days after the launch. This decision was made following a lack of acknowledgment from the National Payments Corporation of India regarding Coinbase’s operations. By late 2023, Coinbase had ceased all services in India and asked its Indian users to close their accounts.
O’Loren reflected on this period, saying, “Historically, we had millions of customers in India, but we took a very clear stance to completely offboard those customers from overseas entities where they were resident and regulated. It seems a bit drastic, sure, but sometimes you need to reset.” He added that making such choices as a businessman often brings hesitation.
Following this setback, the company began collaborating with the Financial Intelligence Unit (FIU), which supervises transactions and fraud. This year, Coinbase finally registered in India and started allowing users to sign up for early access back in October, and the app is now available to everyone.
Many tech companies are eager to establish a presence in India to tap into the country’s vast online user base. However, strict regulations and taxes on cryptocurrency make it challenging for crypto firms compared to more traditional internet businesses. For instance, India imposes a hefty 30% tax on crypto income without allowing for losses to offset that tax, coupled with a 1% deduction on each transaction. Such measures can be discouraging for frequent traders. O’Loren expressed a desire for the government to reconsider these taxes to alleviate some of the burdens associated with owning digital assets.
Despite the obstacles, Coinbase holds an optimistic view of the Indian market. The company’s venture arm has secured additional funding, with the local exchange CoinDCX recently valued at $2.45 billion. Coinbase also aims to expand its workforce in India, seeking to hire over 500 people for various roles targeted at both domestic and international markets.
“We want to establish ourselves as a trusted exchange and ensure that your funds are secure with us,” O’Lauren stated. He emphasized the necessity for a strong user interface and a reliable experience akin to that offered by popular Indian apps like Zepto and Flipkart, suggesting that without these features, widespread adoption could be difficult.
