Coinbase Launches Direct INR Support in India

Direct Banking Integration Changes the Game

Coinbase now allows Indian customers to deposit and withdraw funds directly from their bank accounts using the Immediate Payment Service (IMPS). This eliminates the previous need for third-party intermediaries or peer-to-peer workarounds that many users relied on to access the platform.

The new setup includes dedicated INR order books, enabling users to trade crypto assets directly against the rupee without converting through stablecoins or other currencies. This should result in better liquidity, tighter spreads, and a smoother overall experience for both new and experienced traders.

Regulatory Compliance and Market Return

This launch comes after Coinbase secured registration with India's Financial Intelligence Unit (FIU-IND). The company has emphasized full compliance with local tax rules, including the 1% TDS on transactions and the 30% tax on gains.

The development represents a turnaround from 2022, when Coinbase's initial attempt to offer UPI payments faced regulatory hurdles and was quickly suspended. The current approach using IMPS appears designed for greater stability and regulatory alignment.

Long-Term Investment in the Indian Ecosystem

Coinbase has positioned itself for sustained growth in India. The company has invested in local platforms, including taking a stake in CoinDCX, and has directed over $1 million toward the developer community through its Base Ethereum Layer-2 network. More than 4,000 Indian developers have built on Base, with around 150 projects evolving into startups.

John O’Loghlen, Coinbase’s Head of Asia-Pacific, described India as one of the most important markets globally, citing its strong developer base, high trading activity, and growing blockchain adoption. He stated the company is committed for the long term.

India's Leading Position in Crypto Adoption

India continues to rank first in global crypto adoption for the third year running, according to industry reports. The domestic crypto market reached approximately $3.04 billion in 2025 and is projected to grow to $14.21 billion by 2034 at a compound annual growth rate of around 18.66%.

Despite high tax rates on crypto transactions, user interest remains strong, particularly among younger demographics and developers exploring blockchain applications.

Strategic Implications for Coinbase

The India expansion forms part of Coinbase's broader push into high-growth Asian markets. By offering institutional-grade tools alongside retail-friendly banking integration, the platform aims to attract both everyday users and more sophisticated traders seeking better execution and global liquidity.

Analysts see this as a test case for Coinbase's ability to operate successfully in regulated emerging markets. Success here could influence approaches in other regions with similar adoption patterns and regulatory frameworks.

While challenges like tax burdens remain, the direct INR rails provide a more efficient on-ramp and off-ramp for users, potentially increasing overall trading volumes on the platform within India.