Key Takeaways:
Coinbase is re-entering India's crypto market with direct bank rails and regulatory registration, four years after its first attempt collapsed over payment infrastructure issues.
Coinbase will let Indian users deposit and withdraw rupees directly via the Immediate Payment Service starting June 1, bypassing the peer-to-peer channels that have long exposed traders to scams and account freezes, the Nasdaq-listed exchange said Monday.
"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," John O'Loghlen, Coinbase's head of APAC, said in the announcement.
The rollout pairs direct IMPS rails with spot trading for major assets and perpetual futures contracts through Coinbase Advanced, which offers TradingView integration and institutional-grade APIs. The exchange is building local INR order books so users trade against domestic liquidity rather than global pricing routes. Coinbase has registered with India's Financial Intelligence Unit, the agency responsible for monitoring suspicious financial transactions.
India's crypto market reached $3.04 billion in 2025 and is projected to grow to $14.21 billion by 2034, according to Imarc, a compound annual growth rate of 18.66%. The country ranked first in Chainalysis's Global Crypto Adoption Index. Coinbase's earlier attempt to enter India in 2022 collapsed within days after the National Payments Corporation of India said it was unaware of any arrangement involving a crypto exchange.
Why FIU registration matters
Coinbase's registration with FIU-IND addresses the regulatory gap that doomed its 2022 launch. The agency enforces anti-money laundering and know-your-customer reporting standards for all digital asset entities operating in India. The move gives Coinbase a compliance foundation that local exchanges such as CoinDCX — in which Coinbase is an investor — already maintain. The exchange has also funneled more than $1 million into Indian developers through its Base Layer 2 network, signaling a longer commitment beyond the product launch.
The tax headwind
India's 30% flat tax on digital asset gains and a 1% tax deducted at source on every transaction continue to suppress high-frequency trading volumes, according to local exchange data. Coinbase's revenue from India will depend less on retail speculative turnover and more on its ability to attract institutional clients through its Advanced suite and custody offerings. The company, which trades at a trailing price-to-earnings ratio above 70 times as of late May, faces pressure to prove its global expansion strategy can offset volatility in crypto trading volumes after reducing its global workforce by about 14%.
The direct INR rollout gives Coinbase a cleaner entry point than its 2022 attempt, but sustained growth will depend on whether Indian users shift from informal P2P habits to regulated exchange rails under a tax regime that discourages frequent trading.
This article is for informational purposes only and does not constitute investment advice.
