How India’s crypto exchanges forced Coinbase to halt its services. Explore the details
In a significant development in the cryptocurrency world, Coinbase, one of the world’s leading cryptocurrency exchanges, has announced its decision to cease its operations in India due to tightening crypto regulations. Users received emails stating they could withdraw funds until September 25, and new sign-ups were suspended. This move aligns with India’s stricter stance on cryptocurrencies.
Coinbase suspending services in India is due to uncertain cryptocurrency regulations. India’s ongoing discussions and lack of clear rules make it challenging for crypto businesses, reflecting widespread concerns about their future in the country.
According to a TechCrunch report, Coinbase has informed users that access to Coinbase.com or the Coinbase app will be available until September 25, 2023. Users are urged to withdraw their account funds by this date. Additionally, new user sign-ups have been turned off in India, with Coinbase suggesting users download Coinbase Wallet as an alternative.
In April of the previous year, Coinbase Co-founder and CEO Brian Armstrong personally visited India. During his visit, he raised concerns about the informal constraints imposed on India’s crypto market trading by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). Armstrong openly stated that Coinbase had to discontinue its trading services in India due to unofficial pressures from the RBI.
The cryptocurrency firm initiated its exchange services in India in May last year but had to cease payments via UPI due to unofficial RBI constraints. Multiple banks discontinued UPI for crypto-related payments following verbal instructions from the NPCI.
For Indian cryptocurrency investors who have been using Coinbase, this decision raises concerns. Coinbase has been a reliable platform known for its user-friendly interface and robust security measures. Many Indian investors have trusted Coinbase to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum.
Finance Minister Nirmala Sitharaman, during the recent G20 Summit in New Delhi, mentioned that the G20 will decide on the regulation or potential prohibition of crypto assets.
Finally, Prime Minister Narendra Modi, addressing the mega event, acknowledged that cryptocurrency had emerged as a new focal point for social order and monetary and financial stability. He emphasized the necessity of establishing global standards for cryptocurrency regulation, citing the precedent of Basel standards in banking regulations. Furthermore, it’s worth noting that Coinbase has made substantial investments in Indian crypto exchanges such as CoinDCX and CoinSwitch Kuber.