Coinbase Resumes User Registrations in India
Coinbase has formally resumed user registrations in India after being absent for more than two years, a crucial move for the platform aiming to regain a foothold in one of the globe’s largest cryptocurrency markets. According to John O’Loghlen, Coinbase’s director for the Asia-Pacific region, users in India can now register for the platform and engage in crypto-to-crypto trading. This announcement was made during the India Blockchain Week event.
Future Plans and Features
Looking ahead, O’Loghlen indicated that the company has plans to implement a fiat on-ramp feature by 2026, allowing users to convert Indian rupees into digital currencies directly through the app. This capability had been paused shortly after its initial launch in 2022 due to complications with the Unified Payments Interface provider, which led to Coinbase’s full withdrawal from the Indian market in 2023, resulting in the offboarding of millions of users.
Regulatory Compliance and Strategy
Since then, Coinbase has adopted a “clean slate” strategy, aligning closely with Indian regulators, particularly the Financial Intelligence Unit, responsible for enforcing compliance and anti-fraud measures in the country. Earlier this year, the platform secured necessary registrations and began a limited onboarding process in October under an early-access initiative before expanding its services to a wider audience this month.
Challenges in the Indian Market
This strategic comeback arrives amidst a challenging landscape for cryptocurrency firms in India, where a steep 30% tax on crypto income is imposed along with a 1% tax deducted at source for each transaction. Since these tax regulations were implemented in the 2022-23 fiscal year, the Indian government has raised approximately $818 million (₹700 crore) from digital-asset activities, reflecting significant tax contributions of $323 million (₹269.09 crore) in the first year and $525 million (₹437.43 crore) in the 2023-24 period. Industry experts have noted that such stringent rules have severely diminished local trading volumes and complicated operational processes for exchanges.
Commitment to Expansion
Despite the daunting regulatory environment, Coinbase remains committed to expanding its presence in India. In a notable move in mid-October, the company disclosed its intention to increase investments in CoinDCX, the country’s leading exchange, valuing it at $2.45 billion. Analysts, along with company executives, believe this partnership may provide a more effective pathway into the Indian market compared to rebuilding payment systems independently. Furthermore, Coinbase plans to bolster its local workforce, which currently exceeds 500 employees, as it envisions India as a strategic hub for broader opportunities across South Asia and the Middle East, according to reports from TechCrunch.
