Coinbase Relaunches in India with INR Trading

Global cryptocurrency exchange Coinbase has officially relaunched its platform in India, enabling direct Indian Rupee (INR) trading for local customers. This strategic re-entry, announced recently, allows digital currency investors to deposit and withdraw funds directly via their bank accounts using Coinbase’s immediate payment service (IMPS) offering, marking a significant development for the country’s burgeoning crypto market.

The platform now offers Indian users comprehensive access to spot trading across a diverse range of crypto assets. Additionally, it provides perpetual futures contracts covering major cryptocurrencies, expanding the financial instruments available to local traders. This expanded functionality aims to cater to both individual retail investors and larger institutional traders within the rapidly growing Indian digital asset ecosystem.

Coinbase’s Strategic Return to India

John O’Loghlen, head of APAC at Coinbase, underscored India’s critical importance in the global cryptocurrency landscape. “India has long been one of the most important markets in crypto, in terms of developer talent, trading activity, and the broader adoption of blockchain technology. With the launch of direct INR rails, we’re making Coinbase fully accessible to Indian retail traders,” O’Loghlen stated, highlighting the strategic rationale behind the re-entry.

Coinbase’s return follows a two-year hiatus from the Indian market, during which it had ceased operations in 2023. This previous exit was largely attributed to mounting regulatory pressures surrounding the then-unregulated asset class. Its current re-entry was facilitated by securing the requisite licensing to operate as a cryptocurrency exchange from India’s Financial Intelligence Unit (FIU) in March of last year, paving the way for its renewed operations.

To support its renewed presence, the company has established local INR order books, specifically designed to provide dedicated liquidity for Indian customers. Beyond catering to retail investors, Coinbase is actively targeting institutional traders by offering a suite of advanced functionality tools. These include institutional-level APIs, WebSocket order book streaming, direct Trading View integration, and a variety of sophisticated order types, positioning itself as a comprehensive platform for various market participants.

Market Landscape and Regulatory Challenges

During its period of paused trading activity in India, Coinbase strategically focused on strengthening its footprint through investments in leading local exchanges. In October of last year, Coinbase notably doubled down on its investment in India’s CoinDCX, one of the prominent domestic crypto platforms, and is also actively pursuing the acquisition of a minority stake in the exchange, demonstrating its long-term commitment to the market.

The Indian cryptocurrency market is on a trajectory of significant expansion, with projections indicating a rise from $3.04 billion in 2025 to an estimated $14.21 billion by 2034, growing at a robust compound annual growth rate (CAGR) of 18.66%. This anticipated growth is attracting considerable interest from other global crypto exchanges; BitDelta launched its operations last month, while major players like Binance and Bybit have also recently secured their FIU licenses, signaling a competitive re-establishment of their presence in the country.

Despite this promising market potential and increasing participation from global exchanges, the regulatory environment for cryptocurrencies in India remains notably complex and uncertain. Cryptocurrencies continue to be largely unregulated in the country, which introduces a layer of operational risk for exchanges and investors alike. Furthermore, financial transactions involving these assets are subject to a substantial 30% capital gains tax and a 1% Tax Deducted at Source (TDS) on every transaction, impacting profitability and liquidity for traders.

Indian authorities continue to express significant concerns regarding the asset class, frequently flagging associated risks. The parliamentary standing committee on finance recently classified cryptocurrencies as “high risk,” citing serious issues such as rampant money laundering, human trafficking, radicalization financing, and suspicious crypto transactions. This official stance underscores the government’s cautious approach and ongoing scrutiny.

Historically, cryptocurrency investors in India have faced challenges, often relying on peer-to-peer (P2P) networks or third-party intermediaries to fund their cryptocurrency accounts. This necessity arose because traditional banks frequently declined to work directly with exchanges due to their murky regulatory standing. Such indirect processes are often lengthy, cumbersome, and inherently prone to vulnerabilities, including scams and potential regulatory actions stemming from suspicious activities, making Coinbase’s direct INR rails a notable improvement for user experience.