Coinbase Restarts India Registrations; Plans 2026 Fiat On‑Ramp
Coinbase has reopened user registrations in India after a two‑year suspension, restoring nationwide crypto‑to‑crypto trading, asset transfers, and wallet features while planning a full bank‑linked INR cash‑to‑crypto on‑ramp in 2026. The exchange originally entered India in 2022 but halted UPI payments and exited in 2023 after the National Payments Corporation of India rejected its UPI use. Coinbase rebuilt regulatory ties, registering with India’s Financial Intelligence Unit in March 2025 and running an early‑access relaunch in October before opening registrations more broadly. Current services include Simple Trade, Advanced Trade and Coinbase Wallet (self‑custody, NFTs, dApps); INR deposits and withdrawals remain disabled pending the planned fiat rails. Coinbase says it will prioritise custody protections, simple onboarding and local hiring (expanding a team of 500+ across product, engineering and compliance) and has boosted investment in Indian exchange CoinDCX. India’s crypto tax regime — 30% tax on gains plus 1% tax deducted at source — remains a headwind. For traders, the phased return signals increased on‑chain liquidity and competition in India ahead of a potential 2026 retail growth catalyst if fiat rails are approved. Short‑term effects may be limited while INR rails are offline; long‑term market access and volumes could rise materially once cash‑to‑crypto flows resume.
Neutral
The news is neutral for immediate price action of major cryptocurrencies because Coinbase’s current India restart enables crypto‑to‑crypto trading and increases user access, but INR deposits and withdrawals remain disabled until the planned 2026 fiat on‑ramp. Short term: limited direct liquidity or fiat inflows will constrain volume and price impact, so traders should expect little immediate upward pressure solely from the relaunch. Medium/long term: the phased return and regulatory registration signal a credible path to reopen a large retail market. If fiat rails are approved and on‑ramp launches in 2026, expect materially higher local demand, improved liquidity and a potentially bullish impact on traded crypto prices in India. Additional factors: competitive responses from local exchanges, India’s 30% capital gains tax and 1% TDS are headwinds to adoption; any policy easing would magnify bullish effects. Traders should monitor regulatory developments, fiat‑rail announcements, local exchange liquidity and on‑chain inflows for timing potential market moves.