Coinbase, one of the world’s leading cryptocurrency exchanges, is halting its operations in India. The company has cited regulatory uncertainties and users not meeting their updated standards as the main reasons behind this strategic decision.
According to a report by TechCrunch, Coinbase India sent out a warning email to its users informing them about the service suspension. The email stated that all services would cease by September 25 and advised users to withdraw their funds from the exchange.
However, it is important to note that this move will only affect users who have not met Coinbase’s updated standards. A spokesperson for Coinbase mentioned that the exchange stopped allowing new user sign-ups in India earlier this year but continues to maintain a strong presence in the country.
The spokesperson also revealed that Coinbase had identified certain accounts that needed to meet their updated standards during a recent routine review. These accounts will be disabled, but customers will have the opportunity to update their information at a later time. The spokesperson emphasized Coinbase’s long-term commitment to India and its plans to strengthen its presence in the market.
Meanwhile, all affected users’ funds will remain safe with the crypto exchange. Users can still withdraw their funds and transfer them to other crypto service providers until September 25. Additionally, Coinbase has stopped Indian users from joining its exchange and instead encouraged them to download the Coinbase Wallet.
Coinbase’s entry into India has been marked by regulatory challenges. The exchange initially allowed users to buy cryptocurrency using a unified payment interface (UPI) payment method. However, due to pressure from regulatory authorities, the company had to stop this service and disable crypto purchases in India.
Indian users who had previously purchased crypto could engage in peer-to-peer trading using the Coinbase Wallet, but these services are subject to standard network and transaction fees.
Coinbase expressed its dedication to collaborating with relevant bodies in India and exploring alternative payment methods. However, the exchange had to halt its trading service in India in May 2022, citing informal influence from the Reserve Bank of India.
Although trading cryptocurrency is not against the law in India, the country has recently begun imposing taxes on it. After discontinuing UPI services last year, Coinbase’s cryptocurrency services have been unavailable in India.
There are individuals within the Indian government, including those at the Reserve Bank of India, who are unsupportive of crypto. They have been quietly applying subtle pressure, often referred to as a “shadow ban,” to hinder certain payments using UPI, a popular payment method in India.
It is essential to note that the information provided is based on reports and statements from Coinbase and other sources. For further details, please refer to the original sources.
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