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Coinbase starts onboarding users again in India, plans for fiat on-ramp nextyear
Coinbase begins onboarding users in India after a two-year pause, allowing crypto-to-crypto trades. The company plans to launch a fiat on-ramp in 2026 pending easier regulations. Bitcoin income is taxed at 30% in India, discouraging trading. Despite challenges, Coinbase's venture fund invests in local exchange CoinDCX and expands its team in the region.
Key points
- Coinbase reopened user registration in India after halting services for two years due to regulatory issues.
- Originally, Coinbase launched in 2022 but had to cease UPI support after the NPCI did not recognize it.
- The company off-boarded users to comply with local regulations, which affected its customer base.
- Coinbase is now engaging with the Financial Intelligence Unit to comply with local laws.
- Current offerings include crypto-to-crypto trades, with plans for a fiat on-ramp in 2026 to allow easier access.
- High taxation on crypto (30% income tax, 1% transaction deduction) discourages frequent trading.
- Despite regulatory challenges, Coinbase invested in local exchange CoinDCX and plans to hire more staff in India.
Why it matters
- In 2023, many tech firms struggle in India due to strict crypto regulations, contrasting with the rapid growth of social and AI platforms.
- Coinbase’s engagement with local financial authorities reflects a trend of companies adapting to tighter regulations in emerging markets.
- Investments in startups like CoinDCX indicate a generational shift in the entrepreneurial landscape, as legacy models face traditional hurdles.
Coinbase's re-entry into the Indian market signifies its commitment to overcoming regulatory barriers, indicating potential growth in the future if taxation conditions ease, as it seeks to establish itself as a trusted exchange in one of the world's largest online markets.