Coinbase has enabled direct Indian rupee bank transfers through the IMPS network, allowing users in India to deposit and withdraw funds instantly. This removes the biggest friction point for crypto traders on the platform.
The integration provides access to spot markets, perpetual futures, and Advanced Trade, all linked to local bank accounts. In a market with roughly 150 million crypto users, this is a significant development.
Coinbase's history in India has been rocky. The 2022 launch stalled due to UPI integration issues. However, registration with India's Financial Intelligence Unit (FIU) provided the regulatory foundation for the IMPS integration.
IMPS is India's real-time interbank system, operating 24/7. The integration has cut transaction times from up to 72 hours to under 10 minutes.
India is the global leader in crypto adoption per Chainalysis, despite a 30% capital gains tax and 1% TDS on trades. Domestic competitors hold about 22% of the advanced trading segment.
Coinbase saw a 300% increase in new account registrations and a 220% jump in INR deposit volumes in the first two weeks of IMPS activation.
For investors, this signals a potential shift in India's regulatory posture. Clearer rules could unlock institutional capital. However, risks remain, including unpredictable policies and a history of regulatory reversals.