Coinbase suspends crypto payments in India, reaffirms ongoing commitment to the market

In a recent development, Coinbase, the popular U.S.-based cryptocurrency exchange, announced that it suspended new user registrations for its exchange services in India back in June this year. This decision came after over a year of struggling to make progress with local authorities in the country.

However, despite the temporary halt in new sign-ups, Coinbase remains steadfast in its commitment to the Indian market, where it has encountered various challenges.

🚨 BREAKING: 🇮🇳 #Coinbase SHUTS DOWN in India 😳

Here's the INSIDE story you WON'T hear anywhere else 🤫

A thread 🧵 pic.twitter.com/99Cux1p5aT

— Keyur Rohit (@CryptoKingKeyur) September 11, 2023

Coinbase's Indian dilemma

Coinbase's foray into the Indian market began last year when its CEO Brian Armstrong travelled to the country to launch the exchange service, introducing support for the widely-used UPI payment system. Unfortunately, the National Payments Corporation of India (NPCI), the authority overseeing UPI, refused to acknowledge Coinbase's India launch.

Consequently, Coinbase had to suspend its support for UPI, leading to a standstill in its progress. The hurdles continued as Coinbase faced informal pressure from the Reserve Bank of India (RBI) in May of the same year.

Although cryptocurrency trading is not illegal in India and has even been subjected to taxation, the RBI's reservations and "shadow ban" tactics hindered Coinbase's operations. The company expressed its commitment to cooperating with the RBI and other relevant authorities but faced ongoing challenges.

Coinbase's clarification & future plans

Recently, Coinbase found itself facing criticism after reports,suggested that the company was still accepting new user registrations in India. Coinbase swiftly issued a clarification, stating that the email notifications sent to some customers were inaccurate and did not represent its current India operations.

These customers were given until 25 September to move their funds before Coinbase ceased exchange services for them.

6️⃣ #Coinbase's Clarification:

👉 Not all Indian users are affected, only those whose accounts didn’t meet Coinbase’s new standards.

👉 Coinbase clarified they're committed to the Indian market long-term and will keep exploring ways to strengthen their presence. pic.twitter.com/ThBEBnCZK6

— Keyur Rohit (@CryptoKingKeyur) September 11, 2023

Despite the challenges and regulatory uncertainties, Coinbase remains resolute in its commitment to India. The company emphasises its continued presence in the country, maintaining a strong technological hub and offering live products, such as the Coinbase Wallet.

With less than 50,000 monthly active users in India, Coinbase faces an uphill battle in a market where regulatory ambiguity prevails.

In short, Coinbase's journey in India has been fraught with obstacles, but the company remains determined to explore avenues to strengthen its presence and continue offering its services in this important market.

As the cryptocurrency landscape in India evolves, Coinbase will navigate the complexities while adhering to regulatory requirements.