Coinbase is making a high-stakes return to the Indian market. The US-based cryptocurrency exchange has officially rolled out direct Indian Rupee (INR) bank transfers via the Immediate Payment Service (IMPS). This integration allows local users to seamlessly deposit and withdraw fiat currency directly to and from their bank accounts to trade spot and perpetual futures.
This launch represents a pivotal moment for Coinbase, which has spent years navigating India’s complex regulatory landscape. By integrating IMPS, the exchange bypasses the peer-to-peer (P2P) workarounds that global competitors have relied on, offering a direct fiat-to-crypto gateway.
Overcoming the Ghosts of 2022
In 2022, Coinbase’s initial launch in India was halted almost immediately. The exchange had integrated the popular Unified Payments Interface (UPI), but local payment authorities quickly distanced themselves from crypto transactions, forcing Coinbase to suspend rupee deposits.
This time, the strategy is different. By securing FIU registration and utilizing IMPS, Coinbase is positioning itself as a fully compliant player.
“Securing a direct banking rail in India is a massive competitive advantage. While other global exchanges operate in regulatory gray areas or rely on risky P2P networks, direct IMPS integration brings institutional-grade trust to retail traders.”
Tapping into the World’s Largest Crypto Adoption Market
Despite heavy taxation—including a 30% tax on digital asset gains and a 1% Tax Deducted at Source (TDS)—India remains an incredibly lucrative market.
Coinbase is entering a highly competitive arena. Local exchanges like CoinDCX, CoinSwitch, and WazirX have long held the market share. However, Coinbase’s deep liquidity, advanced trading interface, and global order books could disrupt the status quo.
FAQ
What is IMPS and how does Coinbase use it?
IMPS (Immediate Payment Service) is an instant interbank electronic fund transfer service in India. Coinbase uses it to allow users to deposit and withdraw Indian Rupees (INR) directly from their bank accounts.
Is Coinbase legal in India?
Yes, Coinbase registered with India’s Financial Intelligence Unit (FIU) in March 2025, allowing it to offer crypto trading services under the country’s Anti-Money Laundering (AML) framework.
What taxes apply to crypto trading in India?
India imposes a 30% tax on crypto profits and a 1% Tax Deducted at Source (TDS) on transactions.
