Coinbase is back in India. And this time, it brought actual banking infrastructure.

The exchange launched direct INR deposit and withdrawal rails on June 1, allowing Indian users to move money between their bank accounts and Coinbase without relying on peer-to-peer intermediaries. The integration uses India’s Immediate Payment Service, or IMPS, a real-time interbank transfer system that sidesteps the UPI headaches that torpedoed Coinbase’s first attempt at cracking this market.

The announcement, made on May 31, represents a genuine strategic pivot for a company that tried to enter India in 2022 with UPI integration, watched that effort collapse, and then pulled out of the country entirely in 2023.

What Indian users actually get

Indian traders now have access to spot trading, perpetual futures on major assets, and Coinbase Advanced tools. There are dedicated local INR order books, which means Indian users aren’t routing through USD pairs and eating conversion losses on every trade.

Coinbase is launching with no INR deposit fees. The exchange is fully registered with FIU-IND, India’s Financial Intelligence Unit.

Why the first attempt failed and what changed

Coinbase’s 2022 attempt to launch in India was not smooth. The exchange initially integrated with UPI, India’s dominant payment network. That integration was quickly disabled after the National Payments Corporation of India essentially signaled it wasn’t comfortable with crypto transactions flowing through UPI rails. Coinbase was left without a payment mechanism in a market where bank transfers are everything.

By 2023, Coinbase had exited India.

IMPS is operated by the same National Payments Corporation of India, but it functions as a direct interbank transfer system rather than a consumer-facing payment app.

Coinbase has put over $1 million into Indian projects, notably backing local exchange CoinDCX. Through its Base Ethereum Layer 2 network, Coinbase has supported more than 4,000 developers and over 150 startups in the country.

India’s crypto market by the numbers

India’s crypto market sits at approximately $3 billion, according to CoinDesk reporting. India ranks first on the Chainalysis global crypto adoption index. The market is expected to grow at a significant compound annual growth rate through 2034.

The country imposed a 30% tax on crypto gains and a 1% TDS (tax deducted at source) on transactions, measures that pushed significant trading volume to offshore platforms.

What this means for investors

India’s domestic crypto exchanges, including WazirX and CoinDCX, have operated in a market where international competitors largely couldn’t offer direct fiat on-ramps. Coinbase’s INR rails change that dynamic.

The perpetual futures offering is particularly significant. Derivatives trading has been a gray area in India, with most domestic platforms either not offering it or offering limited versions.

India’s regulatory environment could shift again. The government has signaled openness to crypto regulation but hasn’t finalized a comprehensive framework. Any sudden policy change, whether on taxation, trading restrictions, or payment rail access, could disrupt Coinbase’s plans just as UPI complications did in 2022.