Coinbase Secures Regulatory Nod for Minority Stake in India’s CoinDCX – Crypto Giants Double Down
India’s competition watchdog just greenlit Coinbase’s strategic play—buying into CoinDCX. Here’s why it matters.
The Backroom Deal That Could Shake Up India’s Crypto Scene
No terms disclosed (classic), but the move signals Coinbase’s end-run around regulatory headaches by cozying up to a local heavyweight. CoinDCX, already flush with unicorn status, gets more firepower to fend off rivals like WazirX.
Regulators Play Catch-Up—Again
While bureaucrats dust off their 'How to Tax Crypto' handbooks, the industry’s writing its own rules. Minor stake? Sure. But in crypto, even a foothold can become a stranglehold.
The Bottom Line
Another day, another exchange pretending this isn’t about hedging against the next 'stablecoin' collapse. Meanwhile, traders? They just want lower fees and fewer KYC hoops.
Coinbase returns to Indian crypto market
After a pause of more than two years, Coinbase has opened its app for registration in India. Currently, users can make crypto-to-crypto trades. However, speaking at India Blockchain Week (IBW), Coinbase’s APAC director, John O’Loghlen, stated that the company plans to introduce a fiat on-ramp in 2026, enabling users in the country to load money and purchase crypto.
Coinbase opened its services in India in 2022, but within days, it had to shut down support for the Unified Payments Interface (UPI) payment network. This move followed the UPI operator National Payments Corporation of India’s (NPCI) refusal to acknowledge Coinbase’s presence in the country. Later in 2023, Coinbase ceased all operations for Indian users and requested that they close their accounts.
“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats [sic], have a clean slate here. As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so you know it wasn’t without some hesitation,” O’Loghlen said.
Coinbase navigates regulations and tax challenges while expanding in India
The company began engaging with the Financial Intelligence Unit (FIU), a government agency responsible for overseeing transactions and combating fraud, and eventually registered with them this year. In October, the app began onboarding users through early access, and it is now open to all users.
Many internet companies have established their bases in India, aiming to tap into the world’s second-largest online user base. While social platforms and AI companies like OpenAI have experienced rapid growth in the market, it has been challenging for crypto companies to follow the same path due to the strict regulations and taxation surrounding cryptocurrencies.
The South Asian country imposes a 30% tax on crypto income without any loss offset, and also charges a 1% deduction on each transaction, which may deter users from trading frequently. O’Loghlen said that the company hopes that the government will relax the taxation to make it less burdensome for people to hold digital assets.
Despite these hurdles, Coinbase remains optimistic about the Indian market. Its venture arm recently increased its investment in local exchange CoinDCX, which has a post-money valuation of $2.45 billion. The company plans to expand its employee base of over 500 in the country by hiring for multiple roles serving both domestic and global markets.
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