Coinbase starts onboarding users again in India, plans for fiat on-ramp next year

In a significant move after a two-year hiatus, cryptocurrency exchange Coinbase has reopened its app for user registration in India. Currently, users can engage in crypto-to-crypto trading, but during the India Blockchain Week (IBW), John O’Loghlen, Coinbase’s APAC director, announced plans to introduce a fiat on-ramp by 2026. This feature will enable Indian users to load money and purchase cryptocurrencies directly. Coinbase initially launched its services in India in 2022, but faced immediate challenges when it had to suspend support for the Unified Payments Interface (UPI) shortly after due to the National Payments Corporation of India (NPCI) not recognizing the exchange's operations. By 2023, Coinbase ceased all activities for Indian users, prompting them to liquidate their accounts. O’Loghlen reflected on the tough decision, stating, "We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities... as a commercial business person wanting to make money, that’s like the worst thing you can do." Following the off-boarding, Coinbase engaged with the Financial Intelligence Unit (FIU), the agency responsible for overseeing financial transactions and fraud prevention, and successfully registered with them this year. The onboarding of users through early access commenced in October, and the app is now fully accessible to all users. While many internet and AI companies have thrived in India, the crypto sector has struggled due to stringent regulations and high taxation. The Indian government imposes a 30% tax on crypto earnings without allowing offset for losses, along with a 1% deduction for each transaction, which could deter frequent trading. O’Loghlen expressed hope for a more favorable tax environment, stating, "We hope the government will relax the taxation to make it less burdensome for people to hold digital assets." Despite facing regulatory hurdles, Coinbase remains optimistic about its prospects in India. The company's venture arm has invested in local exchange CoinDCX, which is currently valued at $2.45 billion. Additionally, Coinbase plans to expand its team in India, focusing on both local and international markets. O’Loghlen emphasized the importance of building trust, saying, "We want to be known as that trusted exchange, ensuring that your funds are safe with us." To reach a broader audience, he added that Coinbase aims to provide a user-friendly interface that allows for quick onboarding, akin to popular Indian apps like Zepto and Flipkart.