Coinbase Opens Direct INR Deposits for Indian Users

Coinbase has opened direct Indian rupee (INR) deposits and withdrawals for customers in India, letting them move money between bank accounts and the exchange without intermediaries.

The rollout is gradual. Several Indian users report a “Buys not supported” prompt after finishing onboarding, while the company says access keeps expanding.

Coinbase’s Second Attempt After the 2022 Retreat

Coinbase routes the new deposits through the Immediate Payment Service (IMPS), India’s interbank transfer system. It is not using the Unified Payments Interface (UPI) for now.

That choice matters. In 2022, the exchange launched with UPI support and suspended it within three days. The shutdown followed a public statement from the National Payments Corporation of India.

Chief executive Brian Armstrong later blamed informal pressure from the Reserve Bank of India. The dispute forced Coinbase into crypto-to-crypto trades and a snag right after launch.

Coinbase reopened Indian sign-ups last year but returned without fiat support, keeping users on crypto-to-crypto trades. By choosing IMPS now, it sidesteps UPI specifically, though IMPS, too, runs on rails that NPCI operates. The exchange is registered with India’s Financial Intelligence Unit (FIU-IND).

On X, one user said he completed onboarding and KYC only to hit the buy block. Coinbase India’s product lead, Akshay Chugh, frames the limits as a staged release rather than a country-wide restriction.

Rolling out gradually to all users. Stay tuned!

— Akshay Chugh (@akshaychugh_xyz) June 1, 2026

Trading Into a Heavy Tax Regime

The launch adds spot trading and perpetual futures, supported by a local INR order book. That lets Indian users trade against domestic liquidity rather than global prices. Offering perpetual futures to retail traders also pushes into a grey area, since India still lacks a dedicated crypto law.

Coinbase has said INR deposits carry no fee, while trading costs aim to match local rivals. Direct bank rails also cut the premiums common on peer-to-peer routes that Indian users leaned on.

One forecast sees India’s crypto market nearing $14 billion by 2034. Local demand stays strong despite the cost of trading at home.

The market is large but constrained. Chainalysis ranks India first in grassroots crypto adoption. Still, a flat 30% tax on gains and a 1% tax deducted at source remain in force.

India’s 2026 budget kept both rates unchanged. The regime has already pushed trading volume offshore, with most Indian activity now routed through foreign platforms.

Coinbase also holds influence after it invested in CoinDCX, one of India’s largest exchanges. That stake gives it local reach while it builds its own rupee rails.

To stand apart from local rivals, Coinbase points to its NASDAQ listing, institutional custody work, and deeper liquidity. That positioning aims at cautious and higher-volume traders.