Key Updates
- •Coinbase has resumed new account registrations in India, ending a two-year freeze.
- •The exchange plans to introduce full fiat deposit and withdrawal support via local partners by 2026.
- •This move aims to tap into India's significant crypto market, which sees over $5 billion in trading volume.
Coinbase Returns to India After a Two-Year Freeze
Coinbase has resumed accepting new user signups in India, ending a service suspension that began in early 2023. The exchange initially paused operations to meet India’s rigorous registration requirements for offshore platforms mandated by the Financial Intelligence Unit (FIU).
Coinbase starts onboarding users again in India, plans for fiat on-ramp next year https://t.co/5VDDkOkV8W
— TechCrunch (@TechCrunch) December 7, 2025
Now fully registered, Coinbase allows Indian users to trade cryptocurrencies like Bitcoin and Ethereum immediately, with trading pairs in USDC. The company confirmed plans to introduce rupee-based fiat on-ramps and off-ramps by 2026 through partnerships with local payment providers. This step addresses a key barrier that drove many users to local exchanges during the freeze.
Fiat Integration and Regulatory Path Ahead
India’s crypto sector has grown rapidly despite a 30% tax on gains and a 1% transaction levy introduced in 2022. Coinbase’s reentry comes as the government reviews its stance, following recent court rulings that struck down some reporting mandates. The exchange, which serves over 100 million users worldwide, sees India as a priority market with 30 million crypto holders.
CEO Brian Armstrong highlighted the opportunity in a blog post, noting compliance efforts since 2023. Local rivals like CoinDCX and WazirX dominate, but Coinbase aims to capture institutional flows with advanced tools. Full fiat support could boost volumes, mirroring expansions in Brazil and Singapore. Risks remain, including potential tax hikes or bans, yet analysts view this as bullish for adoption.
Coinbase's Recent Lending Product Launch
Recently, Coinbase launched a major new lending product that allows eligible US customers to secure USDC loans of up to $1 million. Users can use their existing Ethereum (ETH) holdings as collateral for these loans.
This innovative service provides immediate liquidity without the need to sell cryptocurrency, thereby avoiding potential taxable events. The platform cleverly blends centralized accessibility with decentralized functionality by utilizing the Morpho lending protocol on Coinbase’s Base Layer-2 network.
Ultimately, this initiative enhances flexible credit access in the crypto market and includes a crucial feature that protects borrowers from automatic liquidation, provided certain loan-to-value thresholds are met.