According to TechCrunch, crypto exchange Coinbase has reopened its app for user registration in India after a pause of more than two years. The company’s APAC director, John O’Loghlen, announced at India Blockchain Week that a fiat on-ramp—allowing users to load money and buy crypto—is planned for 2026. Coinbase initially launched in India in 2022 but shut down its UPI payment support within days and then ceased all operations for Indian users in 2023, asking them to offload their accounts. O’Loghlen admitted the company had “millions” of historical customers in India and that off-boarding them was “the worst thing you can do” commercially. The comeback follows Coinbase registering with India’s Financial Intelligence Unit (FIU) this year. The move comes despite India’s stiff 30% tax on crypto income and a 1% transaction deduction.
Burning the Boats for a Clean Slate
Here’s the thing: Coinbase’s strategy here is incredibly aggressive, and O’Loghlen’s “burn the boats” comment is telling. They didn’t just pause; they fully off-boarded millions of users from overseas entities to start fresh with a locally registered, compliant entity. That’s a massive, costly reset. It shows they’re playing the long regulatory game in India, which is basically the only way to survive there. They’re betting that being fully registered with the FIU and building from a “clean slate” will give them the legitimacy they lacked in 2022 when the UPI network snubbed them. But man, asking all your existing customers to leave? That’s a level of corporate patience—or desperation—you don’t see every day.
The Massive Tax Problem
Now, the real elephant in the room isn’t just regulation—it’s taxation. India’s 30% flat tax on crypto profits with no loss offset is brutal. Add the 1% TDS (Tax Deducted at Source) on every single transaction, and you’ve got a market that actively discourages the kind of frequent trading that exchanges thrive on. O’Loghlen hopes the government will relax these rules, but that’s a huge gamble. Can Coinbase build a “trusted” mass-market product when the economics are stacked against the user? They’re aiming for a Zepto or Flipkart-like onboarding experience, but those apps don’t come with a government-mandated 1% friction on every action. Building a user base here will be an uphill slog, not a sprint.
A Two-Phase Comeback Plan
So their rollout is clearly phased. Phase one, happening now: crypto-to-crypto only. This lets them get the app back in people’s hands and start rebuilding a user base with minimal regulatory friction. Phase two, slated for 2026: the fiat on-ramp. That two-year gap is significant. It gives them time to hopefully navigate the payment rail partnerships (maybe UPI, maybe something else) and continue lobbying on the tax front. It also aligns with their other bets in the region, like the additional investment in local exchange CoinDCX. They’re not just building an exchange; they’re building an ecosystem presence with a 500+ person team. I think the question is whether Indian crypto enthusiasts, who’ve managed without Coinbase for years, will care enough to wait until 2026 for the full service.
