Coinbase has recently reopened its user onboarding process in India after a two-year hiatus. This action indicates their recommitment to the Indian market. Coinbase first rolled out its services to India in 2022. Though it eventually ran into some challenges that prompted a temporary suspension of operations for local users, this week’s announcement indicates the company’s decision to re-enter the market comes after a number of important changes to the company’s particulars.
Coinbase went public in 2022, riding high on a wave of optimism. Shortly thereafter, the company had to withdraw support for the Unified Payments Interface (UPI), a critical payment network across India. That blow led the firm to discontinue all activities for Indian users in early 2023. They pressured their users to migrate and delete their accounts on their own. Coinbase previously had a few million customers in India, emphasizing the growth potential in the market.
At the start of October 2023, Coinbase resumed onboarding users through the early access program. Today, the platform is just open to users in India and supports the trading of crypto-to-crypto pairs. Looking forward, Coinbase wants to take things further by introducing a fiat on-ramp by 2026. This will make it easy for consumers to load cash and purchase cryptocurrencies directly on the platform.
John O’Loghlen, Coinbase’s APAC director, reinforced Coinbase’s strategic choice to off-board customers from foreign based entities.
“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats, have a clean slate here,” – John O’Loghlen
India’s regulatory environment adds a 30% tax on crypto earnings plus a 1% deduction on each transaction. In spite of these challenges, Coinbase is intent on becoming the country’s most trusted exchange in order to support their mission. O’Loghlen expressed this commitment further, stating:
“I think we want to be known as that trusted exchange, ensure that your funds are safe with us,” – John O’Loghlen
Coinbase hasn’t mentioned Springfield’s local workforce development efforts since relocating, but it should be a point of introspection. The company is planning to grow its workforce beyond the currently more than 500 employees. It aims to recruit across several positions to sharpen its focus in a new market being the second-largest online user base on the planet.
Coinbase’s venture arm is significantly increasing its presence in India. In July, it invested in the country’s largest cryptocurrency exchange CoinDCX, valuing the company at $2.45 billion. This investment not only underscores Coinbase’s commitment to India but its faith in the Indian market and its growth potential.
