Coinbase has re-entered India with direct rupee deposit and withdrawal rails, marking a significant expansion in a market estimated at $3 billion. The move enables users to transfer funds between local bank accounts and the exchange for spot and futures trading without relying on peer-to-peer transfers.
The exchange gained approval from India's Financial Intelligence Unit (FIU) before launching the service. Coinbase now supports IMPS-based transfers, a real-time payment system widely used in India. The development comes years after the firm previously scaled back operations in the country due to regulatory uncertainty.
India's crypto regulatory landscape has been evolving, with the government imposing a 30% tax on crypto income and a 1% tax deducted at source on transactions. The FIU clearance signals a potential shift toward clearer compliance paths for international exchanges. The U.S. exchange's return may pressure local platforms to enhance their offerings.
Coinbase's move positions it to capture a share of India's growing retail crypto market, the largest in Asia by transaction volume. The direct INR rails reduce friction for users and could boost trading activity. Bitcoin and major tokens saw modest gains in early trading, though the broader market remains focused on upcoming U.S. jobs data and inflation reports.
Community responses on social media have been broadly positive, with Indian traders noting the convenience of bank-to-exchange transfers. Competitors such as Binance and WazirX may face increased pressure to offer similar fiat on-ramps. However, the 30% tax on gains remains a structural headwind for the Indian crypto ecosystem.