Cryptocurrency exchange Coinbase has launched direct deposit and withdrawal functionality for the Indian Rupee, completing its return to India’s crypto market after a three-year absence.
The move marks the first time Coinbase has offered fiat on-ramp capability in India since suspending Unified Payments Interface (UPI) access in 2022 and discontinuing services entirely in 2023. The new rails use India’s Immediate Payment Service (IMPS) interbank transfer system, eliminating the need for peer-to-peer intermediaries that international exchanges previously relied on to operate in the country.
Coinbase returned to India in December 2025 with FIU-IND registration, the compliance framework established for virtual digital asset service providers. The direct INR functionality builds on that relaunch, which initially lacked fiat on-ramp options.
“For Indian customers, our FIU-IND registration means we operate under the compliance framework established for virtual digital asset service providers in India,” Coinbase said in an announcement.
The exchange now offers spot trading across multiple assets and perpetual futures contracts on major cryptocurrencies. “Customers have access to spot trading across a range of assets, alongside perpetual futures contracts covering major crypto assets. We have built local INR order books that provide dedicated liquidity for Indian customers, with continued access to our global exchange,” Coinbase stated.
Builder Investment and Market Positioning
Coinbase has invested over $1 million into India’s crypto developer community through its Base Layer 2 network, funding hackathons, direct grants, and fellowships. The company is also an investor in CoinDCX, one of India’s largest cryptocurrency exchanges.
“Through Base, our Ethereum Layer 2 network, we’ve put over $1 million into the Indian builder community through hackathons, direct grants, and fellowships,” Coinbase said.
The direct INR rails represent a significant shift in how Coinbase operates in India. Previous international exchange entries required workarounds due to regulatory constraints. The FIU-IND registration framework, implemented in 2025, provided the legal foundation for Coinbase to rebuild its Indian operations with compliant infrastructure.
Coinbase’s 2022 entry into India initially faced regulatory pressure that forced suspension of UPI transactions, leaving users without a direct fiat gateway. The company’s complete exit in 2023 reflected the difficulty of operating in India’s tightly regulated crypto environment. The December 2025 relaunch signaled renewed confidence in the market, but lacked the deposit and withdrawal functionality needed for seamless user onboarding.
The IMPS-based system now available removes friction from the customer experience. Rather than relying on informal peer-to-peer networks or international wire transfers, Indian users can deposit and withdraw rupees directly through Coinbase’s platform using standard domestic banking channels.
Regulatory Framework and Compliance
Coinbase’s FIU-IND registration places the exchange under India’s Financial Intelligence Unit oversight. This regulatory status distinguishes Coinbase’s current operations from its previous market presence, which operated without formal compliance designation.
The launch reflects broader efforts by international crypto platforms to establish legitimate footholds in India’s growing but heavily regulated digital asset market. Coinbase’s investor relationship with CoinDCX also signals confidence in India’s long-term crypto ecosystem development.
