Coinbase Halts New Sign-Ups In India
Coinbase has clarified recent media reports that claimed it had ceased operations in India. In a statement issued on Monday, Coinbase affirmed its commitment to the Indian market while addressing concerns about its exchange product’s availability to new users.
Coinbase, stating that we’re discontinuing all services to accounts that no longer meet our updated standards. At this time, we do not know when we will be able to offer these services to you again.
[1 of 6]— Coinbase Support (@CoinbaseSupport) September 10, 2023
Coinbase’s India Pause
The company confirmed that it had disabled new user sign-ups for its exchange product in India back in June of this year. However, Coinbase emphasized that this decision was not indicative of its long-term commitment to the country. Coinbase’s operations in India continue, with a focus on maintaining a robust technology hub and offering live products, including the Coinbase Wallet. A spokesperson for Coinbase stated, “We are committed to India over the long term and continue to explore ways to strengthen our presence in this important market.” The exchange operator has invested in top Indian cryptocurrency exchanges, including CoinDCX and CoinSwitch Kuber, demonstrating its ongoing interest in the region.
Despite Coinbase’s commitment, it faces ongoing challenges in India. The company has struggled to establish a foothold with local authorities for over a year. Coinbase initially launched its exchange in India and introduced support for the popular UPI payment instrument. However, the National Payments Corporation of India (NPCI), which oversees UPI, refused to recognize Coinbase’s India launch. Subsequently, Coinbase suspended support for the UPI payment system.
RBI’s Informal Pressure
Coinbase CEO Brian Armstrong visited India last year to launch the exchange service but encountered resistance from regulators. While cryptocurrency trading is not illegal in India, Armstrong acknowledged that there was “informal pressure” from the Reserve Bank of India (RBI) to hinder cryptocurrency transactions, especially those involving UPI.
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The RBI has been cautious about cryptocurrencies for several years, emphasizing the need for international collaboration to regulate these digital assets. This stance was recently endorsed by the G20 countries in a Leaders’ Declaration, which supported the Financial Stability Board’s (FSB) recommendations for regulating crypto-assets and global stablecoin arrangements. The declaration emphasized the importance of coordinated and comprehensive policies to address the risks associated with cryptocurrencies, including money laundering and terrorism financing risks.
