Coinbase Returns to India After Two-Year Halt
Coinbase, a major cryptocurrency exchange, has reopened its user registration in India after over a two-year pause, according to a report by TechCrunch. The crypto platform is returning to the market and plans to launch an INR-to-crypto fiat ramp in 2026, enabling users to buy and sell cryptocurrencies directly using Indian rupees.
Background of Coinbase in India
The company first launched its services in India in 2022 but ceased operations due to regulatory hurdles. Users are currently allowed to make only crypto-to-crypto trades on Coinbase. The decision to suspend support for the Unified Payments Interface (UPI) within days of its launch in India was due to the regulator, National Payments Corporation of India (NPCI), not acknowledging Coinbase’s operations.
Coinbase’s Plans for India
Speaking at India Blockchain Week (IBW), Coinbase’s APAC director John O’Loghlen said that the company will launch a fiat on-ramp in 2026, enabling Indian users to add money and directly buy crypto. This move is expected to increase the adoption of cryptocurrencies in India and provide users with a seamless experience.
The company has already started onboarding users through early access and has now made the app fully open for all users in India. In February, Reuters reported that the company was engaging with the Financial Intelligence Unit (FIU), India’s apex agency that monitors transactions and suspicious investments to prevent money laundering.
Registration with FIU and Investment in CoinDCX
Coinbase later registered with the FIU this year, demonstrating its commitment to complying with Indian regulations. Furthermore, in October, Reuters reported that Coinbase Global invested in Indian crypto exchange CoinDCX, valuing the company at $2.45 billion post-money. This investment is a significant move by Coinbase, as it seeks to bet on India and its neighbors as key players in the global ‘on-chain’ economy.
According to Shan Aggarwal, Chief Business Officer at Coinbase, the company sees India as one of the emerging leaders in shaping the future of the global ‘on-chain’ economy. This is a significant endorsement of the Indian cryptocurrency market and is expected to boost investor confidence.
Impact on Indian Cryptocurrency Market
The re-entry of Coinbase into the Indian market is expected to have a positive impact on the Indian cryptocurrency market. The launch of an INR-to-crypto fiat ramp will provide users with a convenient way to buy and sell cryptocurrencies, which is expected to increase adoption and drive growth.
Additionally, the investment in CoinDCX is a significant move, as it demonstrates the confidence of global players in the Indian cryptocurrency market. This is expected to attract more investments and drive innovation in the sector.
Challenges Ahead
Despite the positive developments, there are still challenges ahead for the Indian cryptocurrency market. The regulatory environment is still evolving, and there is a need for clearer guidelines and regulations to provide clarity to investors and businesses.
Furthermore, the Indian government has been cautious in its approach to cryptocurrencies, and there is a need for greater awareness and education about the benefits and risks of investing in cryptocurrencies.
Conclusion
In conclusion, the re-entry of Coinbase into the Indian market is a significant development for the Indian cryptocurrency market. The launch of an INR-to-crypto fiat ramp and the investment in CoinDCX are expected to drive growth and adoption. However, there are still challenges ahead, and there is a need for clearer regulations and greater awareness about the benefits and risks of investing in cryptocurrencies.
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FAQs
Q: What is Coinbase’s plan for India?
A: Coinbase plans to launch an INR-to-crypto fiat ramp in 2026, enabling Indian users to buy and sell cryptocurrencies directly using Indian rupees.
Q: What is the current status of Coinbase in India?
A: Coinbase has reopened its user registration in India after a two-year pause and has started onboarding users through early access. The app is now fully open for all users in India.
Q: What is the significance of Coinbase’s investment in CoinDCX?
A: The investment in CoinDCX is a significant move by Coinbase, as it seeks to bet on India and its neighbors as key players in the global ‘on-chain’ economy.