Coinbase denies service discontinuation in India but halts new sign-ups

Coinbase denies service discontinuation in India but halts new sign-ups

Coinbase, a US-based cryptocurrency exchange operator, made a statement about its operations in India. The statement confirmed that new user sign-ups for its exchange product in June have been disabled. However, it is still committed to the country. Coinbase confirmed that some users not meeting its updated standards received emails asking them to move their funds by September 25, but this doesn’t show its broader operations in India.

According to Sensor Tower, Coinbase’s exchange app in India has approximately less than 50,000 monthly active users. Since its launch of the exchange, Coinbase has struggled to progress with local authorities. The lack of progress led to the departure of senior executive Durgesh Kaushik. Coinbase’s CEO Brian Armstrong visited India to introduce the service with UPI payment support, but UPI’s governing body didn’t appreciate Coinbase’s launch, resulting in the suspension of UPI support.

Coinbase had already clarified its plan to collaborate with Indian authorities, including the NPCI. In May 2022, Coinbase halted its trading service in India. This step was taken due to “informal pressure” from the Reserve Bank of India (RBI). However, cryptocurrency trading is not illegal in India and is even taxed. There are reservations within the government, including the RBI, resulting in a “shadow ban” with subtle pressure to disrupt crypto payments via UPI. Indian authorities have emphasized the need for international cooperation to regulate these digital assets for the past few years.

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