Coinbase begins onboarding users again in India, and plans to launch fiat currencies next year

After a hiatus of more than two years, cryptocurrency exchange Coinbase has opened its application for registration in India. Currently, users can make crypto-to-crypto trades – but speaking at India Blockchain Week (IBW), John O’Loughlin, Asia Pacific director at Coinbase, said the company will open a cash market in 2026, allowing users in India to load funds and buy cryptocurrencies.

Coinbase opened its services in India in 2022, and within days was forced to stop support for the Unified Payments Interface (UPI) payment network. The move came after UPI operator National Payments Corporation (NPCI) refused to acknowledge Coinbase’s presence in the country. Later in 2023, Coinbase stopped all operations for Indian users and asked them to empty their accounts.

“We had millions of customers in India, historically, and we took a very clear position of completely removing those customers from offshore entities, where they reside and are regulated. Because we wanted to kind of burn the boats. [sic]You have a clean record here. “As a business person who wants to make money and active users, it’s the worst thing you can do, so you know it wasn’t without some hesitation,” O’Loughlin said.

The company began dealing with the Financial Intelligence Unit (FIU), a government agency that oversees transactions and fraud, and eventually registered with them this year. In October, it began onboarding users through early access, and now the app is open to all users.

Many internet companies have set up their base in India with the hope of tapping into the world’s second largest internet user base. While social platforms and AI companies like OpenAI have found rapid growth in the market, it has been difficult for cryptocurrency companies to follow the same path due to strict regulations and taxes related to cryptocurrencies.

India imposes a 30% tax on cryptocurrency income without any loss compensation, and also imposes a 1% deduction on each transaction, which may discourage users from trading frequently. O’Loughlin said the company hopes the government will ease taxes to make holding digital assets less burdensome for people.

Despite these challenges, Coinbase seems bullish on India. The company’s investment arm pumped more money into local exchange CoinDCX at a post-cash valuation of $2.45 billion. It also plans to strengthen its team of over 500 employees in the country by hiring for multiple roles focusing on local and global markets.

“I think we want to be known as a trusted exchange, and make sure your money is safe with us,” O’Loughlin said. “We wouldn’t go out to the masses if you couldn’t have a really great UI, a reliable experience that allows you to onboard within minutes the same way you would with Zepto or Flipkart or any other super app in India.”