India Welcomes Coinbase (Again): A Turning Point for Crypto?

After a quiet two-year hiatus, Coinbase—the U.S.-based crypto behemoth—is making a comeback in India. This time, it’s not just dipping its toes. The exchange has registered with India’s Financial Intelligence Unit (FIU), marking a significant shift in regulatory alignment. For Indian crypto users, this isn’t just another app launch—it could be the start of a more legitimized crypto ecosystem.

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Why Did Coinbase Leave in the First Place?

In 2022, Coinbase abruptly paused operations in India, citing regulatory pressures that weren’t officially on paper but very much felt in practice. The Reserve Bank of India (RBI) has long been wary of digital assets, and back-channel resistance made it difficult for international platforms to operate freely.

Now, things are changing—and fast.

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What’s Driving the Shift?

There are three major forces at play:

• Global Regulatory Momentum: As the U.S. and EU begin shaping friendlier, clearer crypto frameworks, countries like India are under pressure to modernize their stance—or risk being left behind.
• Geopolitical Influence: With global leaders like Donald Trump and other pro-crypto voices backing Web3 innovation, India may be softening its resistance in order to stay relevant in the global digital economy.
• Domestic Demand: Despite regulatory confusion, India ranks among the top countries in crypto adoption. The people want crypto—lawmakers are now catching up.

Ajay Seth, India’s Economic Affairs Secretary, even admitted that crypto regulations need a “globally coordinated” approach. That’s a big signal.

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What Coinbase’s Return Means for Indian Users

This move isn’t just symbolic—it has real implications for anyone dabbling in digital assets:

• Easier Access: Expect a smoother, more secure on-ramp to cryptocurrencies, especially for first-time investors.
• Better User Experience: Coinbase is known for its clean UI and robust security. That’s a win for Indian traders tired of clunky local platforms.
• Boosted Confidence: A FIU-registered international player entering the market could nudge regulators toward clearer, long-term policies.

If you’ve been sitting on the sidelines, this might be your moment.

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But Let’s Talk About the Elephant in the Room: Taxes

Crypto taxes in India are still, frankly, brutal:

• 30% tax on profits from digital assets.
• 1% TDS (tax deducted at source) on every transaction.

Coinbase’s return doesn’t change this, but it could push policymakers to reconsider these punitive structures—especially if they want India to compete as a Web3 hub.

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The Ripple Effect on Indian Exchanges

Coinbase’s re-entry will likely rattle the cages of homegrown exchanges like WazirX and CoinDCX. Competition brings better products, faster innovation, and (hopefully) lower fees.

It also signals to other global giants—Binance, Kraken, and beyond—that India is warming up. Expect more dominoes to fall.

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Final Thoughts

Coinbase rejoining the Indian crypto party is more than just a headline—it’s a test case for the future of digital finance in India. If regulators play it right, this could unlock the next wave of Web3 talent, investment, and innovation from the subcontinent.

Stay informed. Stay compliant. And if you\’re serious about crypto, now’s a good time to level up.

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Also Read on HustleGrad:

• Top Crypto Wallets for Indian Traders (and Why You Need One)

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Is it legal to use Coinbase in India now?

Yes. Coinbase is now registered with India’s FIU, which means it can operate legally within the current regulatory framework.

Will Indian users get full access to Coinbase\’s features?

That’s still unclear. Initially, features may be limited, but registration suggests full functionality could follow soon.

Does this mean crypto is now safe in India?

Regulatory clarity is improving, but the market is still volatile. As always, invest with caution.

Will crypto taxes change because of this?

Not yet. But Coinbase’s entry might pressure lawmakers to rethink the current tax regime.

Should I move my crypto from Indian exchanges to Coinbase?

It depends on your priorities—security, fees, user experience. Diversifying across platforms isn\’t a bad strategy.