Coinbase Reopens App Registrations in India After Two-Year Hiatus - Crypto Giant Returns

Coinbase just flipped the switch back on in India. After a two-year freeze, the exchange is accepting new users again—and the timing couldn't be more strategic.

The Regulatory Thaw

India's crypto landscape has been a regulatory rollercoaster. The country flirted with outright bans, imposed punishing taxes, and watched billions in trading volume evaporate. Coinbase's initial 2023 launch crashed into payment processing walls, forcing a retreat. Now, with global crypto markets heating up and regulatory frameworks slowly crystallizing, the exchange sees an opening.

A Billion-Person Bet

This isn't charity—it's a calculated grab for one of the world's largest untapped markets. India boasts a massive, tech-savvy population and a historic appetite for gold as a store of value. Coinbase is betting that digital gold holds similar appeal, especially for a younger generation bypassing traditional finance. The move pressures local rivals and positions the firm ahead of any future regulatory clarity.

The On-Ramp Play

Success hinges on frictionless onboarding. Expect aggressive marketing, simplified rupee deposit options, and a curated selection of assets compliant with local scrutiny. The goal? Become the default gateway for India's next wave of crypto adopters. It's a land grab, plain and simple—funded by the same venture capital that loves a 'growth story' over pesky things like short-term profits.

Coinbase isn't just reopening an app. It's reigniting a high-stakes battle for India's financial future—proving that in crypto, no market stays closed forever, especially when there's money to be made.

Coinbase halts all its activities in India 

Regarding Coinbase’s earlier decision to halt its services in India, reports noted that the cryptocurrency exchange had introduced its services in the country back in 2022. After careful consideration, it had to swiftly suspend its efforts to support the Unified Payments Interface (UPI) payment system. This decision came after UPI operator National Payments Corporation (NPCI) refused to recognize the exchange’s operations in India.

Following this denial, Coinbase was left with no other choice but to stop all its activities in the country later in 2023. Afterwards, the crypto exchange instructed its users based in India to close their accounts.

“We previously had millions of customers in India, and we decided to completely remove those customers from overseas entities where they were based and regulated. We wanted a fresh start here,”  O’Loghlen explained.

He further acknowledged that the decision they adopted was not easy for Coinbase, being a company concentrating on generating more income and gaining more active users.

After it ceased all its operations in India, the company partnered with the Financial Intelligence Unit. a national government agency responsible for collecting, analyzing, and disseminating information on suspicious financial activities. Coinbase successfully registered with the agency this year. Initially, it granted its users access to the app in October. Now, the exchange has made it available to everyone.

Coinbase’s reopening in India marks a growing trend among several internet firms that are developing new markets in India. Several analysts weighed in on this trend. They noted that these companies aim to reach the second-largest group of online users worldwide.

In the meantime, sources have warned that while AI companies, such as OpenAI, and social media platforms are experiencing rapid growth in this market, cryptocurrency firms are encountering significant challenges due to the strict regulations being implemented and tax hikes on digital currencies.

Coinbase raises concerns about India’s tax imposed on crypto earnings 

In India, crypto earnings are subject to a 30% tax, inclusive of any losses encountered. The country also imposes a 1% tax on every transaction.

Analysts cautioned that such factors may deter individuals from engaging in frequent trading. As Coinbase fully reopens in the country, O’Loghlen stated that the crypto exchange is optimistic that the government will soon reduce these tax burdens, making it easier for individuals to own digital assets.

Meanwhile, despite these obstacles, the firm stated that it has a bullish outlook for its expectations in India. Coinbase also mentioned that its investment branch invested more funds into CoinDCX, the top crypto trading app in the country. This crypto trading app is now valued at $2.45 billion following its funding round.

To further demonstrate its commitment to solidifying its position as a leader in the crypto industry, the crypto exchange publicly highlighted its intention to grow its workforce, which comprises more than 500 workers in India, by hiring for various positions targeted at both local and international markets.

“I think we want to be recognized as a trusted exchange that keeps your money safe,” O’Loghlen stated. “We can’t reach a wide audience if we don’t provide an easy-to-use interface and a reliable experience that lets you sign up within minutes, just like you WOULD with Zepto, Flipkart, or any other popular app in India.” 

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