By Lal Singh Over the past few years India has seen a rise in interest in cryptocurrency. A lot of individuals want to trade in Bitcoin and other digital coins but there is still some question over whether crypto exchanges are allowed in India or not. A lot of people usually ask about Coinbase, which is one of the biggest & most popular cryptocurrency platforms in the world. So, is it legal to use Coinbase in India or not?
Learning about India’s rules for Crypto:
It is not against the law to use cryptocurrencies like Bitcoin and Ethereum in India but they are not counted as a legal tender. You can’t use them like currency to buy groceries or pay any bills. The Reserve Bank of India has warned individuals about the risks of trading cryptocurrencies, include price swings and scams.
In 2018, banks were not allowed to help crypto companies. On the other hand The Supreme Court of India, got rid with this rule in 2020. After that, people in India can trade in cryptocurrencies again.
The Indian government now started imposing high tax rates on crypto income. There is about 30% of tax on profits coming from trading cryptocurrencies and exchanges must follow strict regulations regarding KYC and stopping money laundering.
Coinbase’s Journey to India:
Coinbase came to India for the first time In 2022. It allows users to register and trade in cryptocurrencies. But things went wrong when Coinbase tried to use UPI to make the payments. UPI services were stopped because of uncertainty about the rules and Coinbase couldn’t process INR deposits smoothly.
Due to such problems Coinbase had to cut back on its services and then stopped most of its operations in India. Most of the users thought Coinbase had quit from India.
Coinbase’s Return to India:
Coinbase came back in 2025 when it signed up with the Financial Intelligence Unit – India (FIU-IND). All crypto exchanges in India must register for this. Coinbase was now officially following Indian rules after this phase was finished.
Coinbase has started letting Indian users to register again in late 2025. Right now, Indian users can trade crypto for crypto, store digital assets, and send cryptocurrencies. Still there are few limited options for Indian users to withdraw and deposit money (INR) directly through bank and these should be improved in the future.
What Services Are There for Indian Users?
Coinbase allows Indian users to do the following things right now:
- Use crypto pairings to buy and trade cryptocurrencies
- Keep your crypto safe in wallets
- Move crypto to other wallets
- Follow the rules for KYC and reporting.
But not all users can still use quick bank transfers in INR.
Is Coinbase Allowed in India?
Answer is Yes, Coinbase is allowed and legal in India because it is registered with FIU-IND and meets all of India government requirements for compliance. Now Users can use Coinbase to trade cryptocurrencies but they have to know that the values might fluctuate quickly and that they need to follow all the tax rules properly to avoid any kind of legal issues.
Conclusion:
Coinbase is authorized to do business in India and has come back after complying with all the rules & Guidelines. Indian users can now safely trade cryptocurrencies on their web portal as long as they do their KYC and pay their taxes properly that are due.
Cryptocurrencies are still unsafe & risky for investments purpose and India doesn’t treat them as a legal tender. If you want to use Coinbase, then be sure you know all the rules and regulations, how taxation work and how to invest their money safely on such platforms.