Coinbase app users can utilise the platform for fund withdrawals until September 25, and the platform is temporarily suspending new user registrations.
Cryptocurrency exchange firm Coinbase has revealed its intention to cease operations in India in response to the country’s increasingly stringent cryptocurrency regulations. As reported by The Economic Times, Coinbase users have been notified via email and will have the opportunity to utilize the app for fund withdrawals until September 25. Additionally, new user registrations on the platform will be temporarily suspended. Users began receiving these emails on Sunday, September 11. A spokesperson has also confirmed these developments to the publication, stating, “It is possible that during the course of a recent routine review of our systems, some accounts may have been identified that no longer meet our updated standards. We will, therefore, be disabling these accounts and allow customers to update their information at a later date.” The company emphasizes its commitment to “raising the bar” by initially disabling legacy accounts.
Notably, Coinbase has not disclosed the specifics of these “updated standards.” This announcement comes several months after Coinbase appointed Durgesh Kaushik, the former head of Snap India, as Senior Director for Market Expansion.
Coinbase initially launched in India in April of the previous year, offering users the option to purchase cryptocurrencies such as Bitcoin, Dogecoin, and Ethereum via UPI (Unified Payments Interface). However, shortly after the launch, the company had to discontinue the UPI payment option due to government intervention. Instead, users were provided with alternative payment methods to buy cryptocurrencies, as UPI is overseen by the National Payments Corporation of India. During the same period, the government also revealed plans to impose a 30% tax on income generated through cryptocurrencies. Approximately a month after discontinuing the UPI payment option, Coinbase’s Co-founder and CEO, Brian Armstrong, hinted that the move was a response to informal pressure from the Reserve Bank of India (RBI). He also acknowledged that cryptocurrency trading was not illegal in India but suggested that certain “government elements” exerted “gentle pressure.”
During the recent G20 meeting in New Delhi, Prime Minister Narendra Modi addressed the need for establishing a framework to regulate cryptocurrencies on a global scale. He emphasized the importance of developing global standards, citing the Basel standards on banking regulations as a model. However, he underscored that “if an organization doesn’t adapt to changing times, it loses its relevance.”
In January, Coinbase had previously announced its decision to suspend operations in Japan due to similar government pressures.
