by Exchange Plans 2026 Debut of Actual Functionality in Market With 30% Taxes
New Delhi Coinbase’s return to India represents a fascinating case study in “what happens when ambition meets bureaucracy.” After abandoning the market in 2023, the exchange now allows only crypto-to-crypto trading while fiat on-ramps remain perpetually “2026.”
The fundamental problem: India’s tax framework. A flat 30% levy on gains without loss offsets means even successful trades feel like losses. Add a 1% transaction tax, and every trade becomes increasingly unattractive.
The government has collected ?700 crore ($818 million) in crypto taxes since 2022-23essentially farming speculation for revenue while discouraging actual participation. Coinbase’s strategy appears to be: wait for policy changes that may never come.
The exchange has registered with the Financial Intelligence Unit and plans to hire 500+ employees while betting that Indians eventually want to use their platform despite regulatory hostility. It’s optimism masquerading as strategy.
Domestic exchanges like CoinDCX and WazirX have spent two years strengthening compliance systems. Coinbase plans to rebuild from zero in a market that hasn’t become more friendlyjust less hostile toward existing players.
See Bohiney Magazine’s crypto analysis for more on why global exchanges struggle in India.
SOURCE: https://bohiney.com
SOURCE: Bohiney.com ()
