Coinbase Returns to India After 2-Year Hiatus: Crypto Giant Doubles Down on World’s Fastest-Growing Market

Coinbase just flipped the switch back on in India. Two years after regulatory uncertainty forced a retreat, the exchange is making a calculated—and aggressive—return. This isn't a toe-dip; it's a full-scale re-entry into a market with over 1.4 billion people and a crypto adoption rate that's been sprinting ahead of the West.

The Regulatory Maze: India's U-Turn

Remember the 30% tax on crypto gains and the 1% TDS on every transaction? That 2022 policy hammer sent chills through the industry. Exchanges bled users, trading volumes plummeted overnight, and Coinbase hit pause. Fast forward to today, and the narrative is shifting. The government's stance has evolved from hostile to cautiously pragmatic, creating a narrow—but real—window for compliant operators.

Building for Bharat, Not Just India

Coinbase isn't just reopening an old office. The playbook now includes local payment rail integrations (goodbye, failed UPI experiment), rupee-denominated trading pairs from day one, and a developer hub aimed at India's formidable tech talent pool. They're betting that India's young, digitally-native population will treat crypto not as a speculative toy, but as a foundational piece of their financial identity—savings, remittances, and all.

The Local Giants Aren't Sleeping

WazirX, CoinDCX, and ZebPay didn't just survive the regulatory winter; they adapted. They've spent the last two years building deeper local trust and navigating the compliance labyrinth. Coinbase's global brand is a weapon, but it's entering a ring where the incumbents know every contour of the mat. The battle won't be won on features alone, but on who can best translate crypto's promise into tangible utility for the Indian user.

A $2 Trillion Question Mark

India's crypto story is a paradox of immense potential tangled in regulatory red tape. Coinbase's return is a massive vote of confidence, signaling that institutional players see a path to profitability where others see only risk. It's a high-stakes gamble that the world's largest democracy will formalize its crypto economy—and that the rewards will justify the two-year wait and the operational headache. After all, in high finance, sometimes the best trade is to buy back in when everyone else is still figuring out the tax forms.

Coinbase has resumed user registrations in India after over two years, now offering crypto-to-crypto trading while planning a full fiat on-ramp in 2026 for direct rupee deposits. The exchange launched in 2022 but suspended UPI payments days later due to National Payments Corporation restrictions, leading to a full exit in 2023 amid regulatory hurdles. APAC Director John O’Loghlen announced the relaunch at India Blockchain Week, targeting compliance with FIU-IND.