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Coinbase has reopened operations in India two years after shutting down, initially offering crypto-to-crypto trading with plans to enable rupee deposits and withdrawals by 2026.
The U.S. exchange’s return follows a compliance-focused strategy after India’s payment regulator blocked its use of the country’s digital payment infrastructure in 2023, forcing the platform to exit a market with millions of active crypto traders.
“Exiting India was a strategic gamble,” said John O’Loghlen, Coinbase’s Asia-Pacific regional director, speaking at India Blockchain Week. “It was counterintuitive from a business standpoint, but it cleared regulatory hurdles and set the stage for a clean return.”
The San Francisco-based exchange first entered India in April 2022 but had to suspend operations after the National Payments Corporation refused to authorize the use of the Unified Payments Interface.
By September 2023, Coinbase had withdrawn entirely, requiring users to liquidate holdings and move funds elsewhere. Now, the Coinbase India return positions the company alongside competitors like Binance, KuCoin, and Bybit, all of which faced regulatory crackdowns for violating anti-money laundering rules in early 2024.
“Our compliance-first approach ensures we meet all Financial Intelligence Unit requirements, providing a safer trading environment,” O’Loghlen explained.
Coinbase has strengthened its Indian presence through increased capital investment in local exchange CoinDCX, valued at $2.45 billion.
The platform employs over 500 staff members nationwide and continues to hire for domestic and international operations.
Chief legal officer Paul Grewal recently joined the U.S.-India Business Council board to bolster bilateral commercial ties, signaling the strategic depth behind the Coinbase India return.
Despite the Coinbase India return, the regulatory landscape presents significant operational challenges.
India’s cryptocurrency tax framework imposes a 30% levy on profits without loss offsets, alongside a mandatory 1% transaction tax.
For high-income traders, the effective tax burden can reach 42.7%, pushing much of the nation’s trading volume offshore.
“The taxation environment is challenging, but we remain optimistic that the government will introduce reforms making crypto ownership more accessible,” O’Loghlen stated.
The Reserve Bank of India has historically opposed cryptocurrencies over concerns about financial stability, money laundering, and systemic risks.
Government documents also reveal hesitation to enact formal crypto legislation, fearing accelerated mainstream adoption could expose the financial system.
The Coinbase India return is not just a tactical move but a long-term strategy. With crypto-to-crypto trading live now and fiat integration on the horizon, the platform is positioning itself to become a dominant player in India’s evolving digital asset market.
Analysts suggest that the Coinbase India return could catalyze increased adoption, encourage regulatory clarity, and stimulate investment in local blockchain projects.
“Coinbase’s strategic return underlines global confidence in India’s crypto potential,” said Anjali Sharma, a fintech analyst at Global Market Insights. “It sets a benchmark for international platforms navigating complex regulatory frameworks.”
As India’s crypto landscape continues to evolve, the Coinbase India return exemplifies how careful compliance, strategic investments, and long-term vision can overcome regulatory headwinds, offering a blueprint for other global exchanges eyeing the market.
