Coinbase, the largest cryptocurrency exchange in the United States, has announced its re-entry into the Indian market after a two-year hiatus. Users in India can now register on the platform and conduct cryptocurrency transactions.
A significant aspect of this return is Coinbase's plan to enable direct transactions with the Indian rupee (INR) in 2026, a move described as a crucial turning point for the exchange, which had previously suspended operations due to regulatory challenges.
Direct Rupee Transactions and Regulatory Engagement
Speaking at India Blockchain Week, John O'Loghlen, Coinbase's Asia Pacific Director, revealed the company's intention to facilitate fiat deposits by 2026. This development is expected to simplify the process for Indian users to purchase cryptocurrencies directly.
O'Loghlen emphasized that Coinbase has adopted a fresh approach, engaging directly with the Financial Intelligence Unit (FIU), the agency overseeing digital asset transactions. Coinbase successfully completed its FIU registration earlier this year and commenced accepting users through its early access program in October.
Past Challenges and Current Strategy
Coinbase initially launched in India in 2022 but encountered immediate obstacles due to its inability to support the National Payments Corporation (NPCI) Unified Payments Interface (UPI). This limitation ultimately led to Coinbase ceasing all operations in India in 2023, with users advised to withdraw their funds.