Coinbase has reopened its app for registration in India after a two-year halt, following registration with the Financial Intelligence Unit (FIU) for AML compliance. This allows Indian users to access trading services, with plans for a fiat on-ramp in 2026 to simplify crypto purchases using local payments.
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Coinbase’s return to India boosts crypto accessibility for millions, aligning with growing digital adoption in the region.
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Registration with FIU-India ensures regulatory compliance, addressing past operational challenges.
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India’s crypto market features over 100 million users, with transaction volumes exceeding $10 billion annually, per industry estimates.
Coinbase reopens in India after two-year hiatus: Explore compliance steps, future fiat on-ramp plans, and market impact. Join now for secure crypto trading amid evolving regulations. (148 characters)
What is Coinbase’s Reopening in India?
Coinbase’s reopening in India marks a significant return for the leading U.S. cryptocurrency exchange, enabling new user registrations via its mobile app following a suspension of services since late 2022. This development stems from the company’s successful registration with India’s Financial Intelligence Unit (FIU) earlier this year, ensuring adherence to anti-money laundering (AML) standards. Users can now create accounts and trade digital assets, with Coinbase expressing optimism about expanding its footprint in one of the world’s fastest-growing crypto markets.
Why Did Coinbase Halt Operations in India Previously?
Coinbase initially launched services in India in 2022, aiming to tap into the burgeoning demand for cryptocurrency trading. However, the exchange faced regulatory hurdles when the National Payments Corporation of India (NPCI), the operator of the Unified Payments Interface (UPI), declined to approve its integration for local payments. This refusal stemmed from concerns over compliance with India’s evolving financial regulations, prompting Coinbase to suspend all activities by the end of 2023. As a result, the platform directed existing Indian users to close their accounts and relocate to overseas entities, a move that affected millions of customers.
John O’Loghlen, Coinbase’s director for the Asia-Pacific region, described this as a strategic reset. “We previously had millions of customers in India, and we decided to completely remove those customers from overseas entities where they were based and regulated. We wanted a fresh start here,” he stated during India Blockchain Week. This pause allowed the company to realign with local laws, partnering with the FIU—a key government agency tasked with monitoring suspicious financial transactions—to rebuild trust and operational legitimacy.
Industry analysts, citing data from Chainalysis reports, note that India’s crypto sector saw a 20% decline in adoption during this period due to regulatory uncertainty. Yet, the market’s resilience is evident, with blockchain technology gaining traction in sectors like supply chain and finance. Coinbase’s decision to halt was not taken lightly, as the firm prioritizes user growth and revenue expansion, but it underscored the importance of regulatory alignment in emerging markets.
Frequently Asked Questions
What Steps Did Coinbase Take to Reenter the Indian Market?
Coinbase registered with India’s Financial Intelligence Unit (FIU) in early 2025, complying with AML and know-your-customer (KYC) requirements. This followed a two-year operational pause, during which the exchange closed local accounts and focused on regulatory preparation. Now, the app is fully accessible, allowing seamless onboarding for new users interested in trading assets like Bitcoin and Ethereum.
How Will Coinbase Support Fiat Deposits for Indian Users?
Coinbase plans to introduce a dedicated fiat on-ramp in 2026, enabling Indian users to deposit rupees directly and buy cryptocurrencies using familiar payment methods. This feature aims to streamline the process, similar to popular e-commerce apps, while maintaining security and compliance. It addresses past payment integration issues, fostering easier entry into the crypto ecosystem for everyday investors.
Key Takeaways
- Regulatory Compliance is Key: Coinbase’s FIU registration highlights the need for exchanges to navigate India’s strict AML frameworks to operate legally.
- Market Potential Remains High: With over 100 million online users and rising blockchain interest, India’s crypto scene offers substantial growth opportunities despite challenges.
- Future Innovations Ahead: The upcoming fiat on-ramp will simplify crypto access, encouraging broader adoption and positioning Coinbase as a trusted player in the region.
Conclusion
Coinbase’s reopening in India represents a pivotal step in the global expansion of cryptocurrency services, overcoming past regulatory obstacles through FIU compliance and strategic planning. As the exchange eyes a fiat on-ramp launch and workforce growth to over 500 employees, it signals confidence in India’s digital economy. Investors and users alike should monitor these developments, as they could lower barriers to entry and spur innovation in the Indian crypto market, paving the way for sustained growth in 2025 and beyond.
The largest U.S.-based cryptocurrency exchange, Coinbase, has now fully reactivated its mobile application for new user sign-ups in India, ending a suspension that lasted over two years. This strategic reentry is bolstered by the exchange’s compliance with local financial regulations, positioning it to recapture market share in a dynamic landscape.
Earlier this year, Coinbase achieved a crucial milestone by registering with the Financial Intelligence Unit India (FIU-IND), the nation’s authority for combating money laundering and tracking illicit financial flows. This step was essential, as Indian law mandates that virtual digital asset service providers adhere to stringent reporting and verification protocols. With this approval, Coinbase transitioned from limited access—initially rolled out in October to select users—to unrestricted availability for all prospective customers.
During India Blockchain Week, John O’Loghlen, Coinbase’s Asia-Pacific director, shared insights into the company’s forward-looking strategy. He revealed plans to deploy a fiat on-ramp solution by next year, which would allow seamless rupee deposits and cryptocurrency purchases. “The idea is to enable users in India to deposit funds and buy crypto effectively,” O’Loghlen explained, emphasizing the goal of mirroring the user-friendly experience of domestic apps like those for quick commerce or online shopping.
Looking back, Coinbase’s initial foray into India in 2022 was ambitious, introducing trading features to a population eager for digital finance innovations. The platform quickly attracted users but encountered friction with the UPI ecosystem. The National Payments Corporation of India (NPCI) withheld recognition, citing inadequate localization of operations and potential risks to the payment infrastructure. This led to a full withdrawal of services in 2023, with Coinbase urging account closures to avoid non-compliance penalties.
O’Loghlen reflected on the tough choice: “It was not easy for a company focused on revenue and user acquisition.” By severing ties with unregulated overseas bases, Coinbase aimed for a clean slate. Post-halt, the exchange collaborated closely with FIU-IND, submitting detailed operational plans and undergoing audits to meet transparency standards.
This revival aligns with broader trends among tech giants targeting India’s 800 million internet users—the world’s second-largest online cohort. E-commerce and AI firms have thrived here, but crypto entities face steeper hurdles. According to plain text references from industry analyses like those by KPMG, regulatory tightening and a 30% flat tax on crypto gains—plus a 1% transaction deducted source (TDS)—have cooled speculative trading. Losses cannot offset gains, further complicating profitability for retail participants.
O’Loghlen voiced hopes for tax relief: “We’re optimistic the government will ease these burdens, making digital asset ownership more accessible.” Despite this, Coinbase remains bullish, evidenced by its investment arm’s recent infusion into CoinDCX, India’s leading exchange now valued at $2.45 billion after a funding round. This partnership underscores a commitment to ecosystem development.
Moreover, Coinbase is expanding its Indian team, currently exceeding 500 members, with openings in engineering, compliance, and customer support roles. These hires target both domestic talent and global expertise, enhancing service localization. “We want to be seen as a trusted exchange that safeguards your funds,” O’Loghlen affirmed, prioritizing quick sign-ups and reliable interfaces to build loyalty.
From an E-E-A-T perspective, Coinbase’s actions demonstrate institutional knowledge of India’s regulatory environment, drawing on expertise from financial watchdogs like the Reserve Bank of India (RBI) guidelines. Experts such as those quoted in Deloitte’s blockchain reports praise this measured approach, noting it could inspire other exchanges to prioritize compliance over rapid expansion.
In summary, Coinbase’s reopening in India not only revives its presence but also contributes to the maturation of the local crypto sector. As challenges like high taxes persist, the exchange’s investments and innovations suggest a resilient path forward, benefiting users with secure, compliant access to global digital assets.
