Coinbase has quietly turned on direct INR deposits and withdrawals for Indian customers, letting users move money in and out via bank transfer without a middleman. The rollout is gradual — some people still see 'Buys not supported' after onboarding — but the company says access is widening. This is the first time since 2022 that Coinbase has offered a fiat on-ramp in India, and it's using a different payment rail to avoid the problems that killed that earlier attempt.
From UPI to IMPS
Back in 2022, Coinbase launched with UPI support. It lasted three days. The National Payments Corporation of India said it wasn't aware of the integration, and Coinbase CEO Brian Armstrong later cited informal pressure from the Reserve Bank of India. This time, deposits route through IMPS — the Immediate Payment Service — not UPI. Coinbase is also registered with India's Financial Intelligence Unit, something it didn't have last time. The shift in payment method and regulatory posture suggests a more cautious approach.
What users see now
Indian users who get access can deposit INR with no fee. Trading costs are supposed to match local rivals like CoinDCX — in which Coinbase has invested. The exchange is also rolling out spot trading and perpetual futures against a local INR order book. Coinbase India product lead Akshay Chugh told users the limits are part of a staged release, not a country-wide restriction. Direct bank rails cut out the premium that often comes with peer-to-peer routes, which had been the workaround for many.
Tax burden still weighs
India's flat 30% tax on crypto gains and the 1% TDS on every trade remain unchanged in the 2026 budget. That regime has pushed a lot of trading volume offshore — most Indian activity now happens on foreign platforms. Coinbase's local fiat on-ramp might bring some volume back, but the tax math hasn't changed. The country ranks first in grassroots crypto adoption per Chainalysis, but the tax structure keeps that activity in a kind of limbo.
Perpetual futures in a grey area
Offering perpetual futures to retail traders is a legally fuzzy move. India has no dedicated crypto law, so perps exist in a grey zone. Coinbase is leaning on its NASDAQ listing, institutional custody, and deeper liquidity to differentiate from local exchanges. Whether regulators will let this stand is an open question. The company has been patient — nearly two years since reopening sign-ups without fiat — and the gradual rollout gives it room to adjust if the reception is rocky.
