Coinbase, the largest US-based cryptocurrency exchange, has resumed user onboarding in India after a two-year pause.
This return follows sustained engagement with Indian regulators. Despite heavy taxes and regulatory friction, India continues to show rapid growth in digital asset adoption.
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Coinbase Reopens Doors to Indian Users
Coinbase initially launched in India in April 2022, targeting a growing crypto user base. However, regulatory headwinds emerged quickly.
The platform suspended support for the Unified Payments Interface (UPI) shortly after the National Payments Corporation of India (NPCI) distanced itself from the platform. By September 2023, Coinbase had stopped accepting new Indian sign-ups and told existing users to withdraw their balances.
Despite this setback, the company continued working to reestablish its presence in India. In February, BeInCrypto reported that the exchange had begun actively working with Indian regulators to align with local compliance requirements.
According to TechCrunch, Coinbase began allowing Indian users to return to the platform in October through an early-access program. The app registration has now been opened widely, although Indian customers are still restricted to crypto-to-crypto transactions.
During India Blockchain Week, Coinbase’s APAC director, John O’Loghlen, said the company is preparing to introduce a fiat on-ramp in 2026, which would allow users to add local currency and purchase cryptocurrency directly.
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“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats [sic], have a clean slate here. As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so you know it wasn’t without some hesitation,” O’Loghlen stated.
Coinbase’s reentry is broader than just platform access. In October 2025, it announced a strategic investment in CoinDCX, one of India’s largest crypto exchange, which serves over 20.4 million users.†
Last week, it signed a memorandum of understanding with Karnataka’s state government to strengthen the state’s blockchain ecosystem and technical capabilities. The partnership centers on developer training, early-stage startup incubation, and public awareness initiatives.
Why Exchanges Are Rushing Back Into India’s Crypto Market
In addition to Coinbase, several other major global exchanges have returned to the Indian market. Bybit resumed operations after completing local registration requirements and paying a $1 million penalty. Binance also made its way back into India last year following the payment of a $2.2 million fine.
This renewed push to operate in India is notable given the country’s strict tax regime. Crypto gains are taxed at 30%, and every transaction carries a 1% Tax Deducted at Source (TDS). Still, India leads Asia-Pacific in crypto activity.
“India, the largest at $338 billion, blends grassroots adoption with structural gaps in finance: a large diaspora has remittance needs, young adults are using crypto trading as a supplementary income, and fintech rails like UPI and eRupi accelerate usage,” Chainalysis highlighted.
Thus, while India’s regulatory environment remains challenging, the renewed interest from Coinbase, Binance, Bybit, and others highlights the market’s long-term potential. With strong grassroots adoption and ongoing government engagement, India is positioning itself as a central hub for digital asset innovation in the Asia-Pacific region.
