Coinbase Resumes User Onboarding in India, Plans Fiat On-Ramp for Next Year
Coinbase, the prominent cryptocurrency exchange, has recently reopened its app for user registration in India after a long hiatus of over two years. Currently, users can engage in crypto-to-crypto trading, but plans for a fiat on-ramp are set for 2026. This new feature will allow Indian users to load local currency and purchase cryptocurrencies.
Background on Coinbase’s Operations in India
Coinbase first entered the Indian market in 2022 but quickly faced challenges. Shortly after launching, the company had to suspend support for the Unified Payments Interface (UPI) due to regulatory issues with the National Payments Corporation of India (NPCI). In 2023, Coinbase completely ceased operations for Indian users and advised them to offload their accounts, marking a significant withdrawal from the market.
Insights from John O’Loghlen
John O’Loghlen, the APAC director at Coinbase, addressed these issues during the India Blockchain Week (IBW). He explained that the decision to off-board previous customers stemmed from a desire for regulatory compliance and to establish a fresh start in India. He noted, “We had millions of customers in India historically, and we wanted to burn the boats and have a clean slate.”
Engagement with Regulatory Bodies
Since then, Coinbase has taken steps to align with local regulations. The company began engaging with the Financial Intelligence Unit (FIU), which monitors transactions and fraud in India, and has successfully registered with them this year. Following these developments, Coinbase began granting early access to new users in October, and the app is now open for all users.
The Indian Market Landscape
India represents a significant opportunity for tech companies, being the second-largest online user base globally. However, the cryptocurrency sector faces hurdles due to stringent regulations and high taxation. Notably, India imposes a 30% tax on crypto income without loss offsets and a 1% transaction deduction, which poses a challenge for frequent trading.
Future Prospects in India
Despite these challenges, O’Loghlen remains optimistic about the future in India. He expressed hope that the government will eventually ease taxation, making it simpler for people to hold digital assets. In addition, Coinbase’s venture arm recently invested in the local exchange CoinDCX, now valued at $2.45 billion.
Plans for Expansion and User Experience
Coinbase aims to grow its local presence in India by expanding its team, which currently numbers over 500. O’Loghlen emphasized the importance of offering a user-friendly interface and a trusted trading experience. He stated, “We want to be known as that trusted exchange, ensuring your funds are safe with us.” The company’s goal is to facilitate seamless onboarding for users, similar to established services like Zepto or Flipkart.
As Coinbase continues to adapt and invest in the Indian market, it is positioning itself to become a key player in the region’s evolving crypto landscape.
