Coinbase Plans India Full Comeback With Fiat Access Set for 2026

Coinbase has reopened sign ups for users in India and confirmed that it plans to launch a fiat on ramp in 2026. John O’Loghlen, Coinbase’s APAC director, shared the update at India Blockchain Week. 

The exchange now allows crypto to crypto trading for all users and aims to restore the ability for people in India to deposit rupees and buy crypto directly once its fiat services return.

This marks Coinbase’s first full re-entry into the Indian market since it halted operations in September, 2023.

Why Did Coinbase Leave India in the First Place

Coinbase launched actively in India in 2022 and gained traction quickly. The company enabled local users to buy crypto through the Unified Payments Interface, a national payment system that powers most digital transactions in India. Within days, the National Payments Corporation of India, the operator of UPI, stated that it did not recognize Coinbase’s use of the payment network. As a result, Coinbase suspended UPI support and limited its services.

By 2023, Coinbase shut down all operations for Indian customers. It asked users to offload their holdings and closed access for accounts that were linked to overseas entities. O’Loghlen later said that Coinbase wanted a complete reset in India. He described the decision as difficult since the company had millions of users in the country, but it chose a full offboarding to avoid regulatory conflict.

“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated,” O’Loghlen said. “Because we wanted to kind of burn the boats [sic], have a clean slate here.” 

After shutting down, Coinbase began working directly with the Financial Intelligence Unit in India. The FIU oversees transaction monitoring, financial crime compliance and reporting requirements for high risk industries. 

Coinbase registered with the FIU earlier this year. The registration was a key step because any exchange operating in India must follow the FIU’s rules on reporting suspicious activity and maintaining compliance systems.

Coinbase reopened access to its app in October through early sign ups and now allows new users to join freely.

What Does Coinbase Offer in India Right Now

At this stage, Coinbase allows only crypto to crypto trading. Users cannot deposit rupees, withdraw rupees, or buy crypto using fiat payment methods. The platform functions as a conversion tool where customers can trade between digital assets. This limitation exists because fiat rails have not yet been approved, and the UPI issue from 2022 has not been resolved.

Despite this limited feature set, Coinbase confirmed that it will bring a fiat on ramp back to India in 2026. A fiat on ramp allows users to add money to their exchange account using regular banking channels and buy crypto directly. This feature is essential for mass adoption because most users in India enter the market through direct purchase rather than transferring assets from other platforms.

O’Loghlen explained that Coinbase chose 2026 after internal planning and regulatory review. He said that the company is working to ensure full compliance with Indian rules and build a long term operating model. The goal is to avoid the operational instability that caused withdrawal in 2023.

How India’s Regulatory Environment Affects Crypto Exchanges

India remains one of the most complex markets for crypto businesses due to its taxation structure and compliance demands. Indian law applies a 30% tax on crypto income, and the tax applies even when users have losses. In addition, every transaction includes a 1% tax deducted at source. Traders say the 1% charge reduces liquidity and discourages frequent trading because it increases the cost of every move.

The government has not yet provided clarity on long term regulation for exchanges. Authorities require compliance with anti money laundering rules, but there is still no dedicated licensing framework for digital asset platforms. This creates a market where exchanges can operate, but must do so cautiously.

Many analysts argue that the tax regime pushes traders to offshore platforms or discourages trading altogether. O’Loghlen said that Coinbase hopes the Indian government will reduce the tax burden over time. Until then, any exchange in the country must operate under these requirements.

What Coinbase Is Doing to Rebuild in India

Coinbase continues to invest in India despite past setbacks. Per recent reports, the company’s venture arm increased its funding in CoinDCX this year at a $2.45 billion post money valuation. CoinDCX is one of India’s largest crypto platforms, and Coinbase’s investment signals a long term interest in the Indian market.

Coinbase also plans to expand its workforce in India. The company already has more than 500 employees in the country, working on products for both the global and domestic market. It aims to hire across engineering, compliance and operations.

O’Loghlen said that Coinbase sees India as a large and important market, even though crypto companies face more barriers compared to social media firms and artificial intelligence companies. India’s digital economy continues to grow, and global companies want to tap into the country’s online user base. However, crypto firms must also manage India’s strict compliance requirements and tax rules.

What a Fiat On Ramp Would Mean for Indian Users

A fiat on ramp would allow people in India to add rupees to the Coinbase app through a bank transfer or supported payment method. Once added, users could buy crypto directly instead of having to transfer assets from other platforms. This simplifies entry for newcomers and reduces friction for regular traders.

A working fiat on ramp supports:

• Direct purchase of digital assets
• Easy deposits and withdrawals
• Higher liquidity for local markets
• Better price discovery for Indian users
• A cleaner compliance trail for regulators

A functional fiat system also helps reduce reliance on peer to peer transfers or external wallets, which often increase user risk. Coinbase wants to build this feature with local oversight to meet FIU and banking expectations in India.

Why Coinbase’s Return Matters Now

Coinbase’s re entry comes at a time when India is seeing renewed activity in blockchain development. Developers, startups and enterprise projects continue to build products on Ethereum, Polygon, Solana and other networks. While traders face tax pressure, the underlying tech ecosystem remains active.

A regulated global exchange that reopens in India helps restore competitive choice for users. Most trading volume in India today flows through local apps like CoinDCX, CoinSwitch and a few smaller platforms. Coinbase’s presence increases competition in compliance, security and user experience.

Coinbase is one of the few major global exchanges that pursues direct regulatory engagement instead of operating offshore for Indian customers. The company’s FIU registration places it in a category of exchanges that handle reporting duties directly with Indian authorities.

Conclusion

Coinbase has reopened user sign ups in India and plans to launch a fiat on ramp in 2026. The exchange now supports crypto to crypto trading and is working to reintroduce full fiat services while meeting India’s compliance and reporting requirements. 

The company has re-engaged with the FIU, strengthened its local investments and continues to expand its India team. India remains a difficult market due to strict taxes and regulatory uncertainty, but Coinbase’s return signals its commitment to building a long term presence in the country.

Resources

1. Coinbase on X: Announcements (October 2025 - December 2025)

2. Report by TechCrunch: Coinbase starts onboarding users again in India, plans for fiat on-ramp next year

3. Report by CoinDesk: Coinbase Reopens India Signups, Targets Fiat On-Ramp in 2026 After Two-Year Freeze

4. Report by The Economic Times: Coinbase is stopping ‘all services’ for Indian users