Coinbase Addresses Reports on User Sign-ups in India
Coinbase, a US-based cryptocurrency exchange, has clarified that it disabled new user sign-up on its exchange product in India back in June. The company issued a statement to counter media reports claiming otherwise and citing customer emails.
Commitment to India Despite Challenges
The email sent by Coinbase notifying some customers of the suspension was not indicative of the company’s overall operations in India. It simply informed users who did not meet Coinbase’s updated standards that they had until September 25th to withdraw their funds before the exchange services cease.
A spokesperson for Coinbase said, “We stopped allowing new user sign-ups on our exchange product in India back in June of this year. We maintain a robust tech hub in the country and offer live products, including our Coinbase Wallet. We are committed to India over the long term and continue to explore ways to strengthen our presence in this important market.”
User Base and Interaction with Local Authorities
Data from Sensor Tower reveals that Coinbase’s exchange app has fewer than 50,000 monthly active users in India. However, the company’s attempts to establish a solid relationship with local authorities have been unsuccessful for over a year. Durgesh Kaushik, Coinbase’s former Senior Director for Market Expansion, left after experiencing frustration due to the lack of progress.
Past Launch Attempt and Regulatory Roadblocks
Coinbase’s CEO Brian Armstrong visited India last year to launch the exchange service in the country, adding support for UPI payments. However, the governing body overseeing UPI refused to acknowledge Coinbase’s launch, leading the exchange to suspend its support for the payments system. Despite cryptocurrency trading being legal in India, informal pressure from the Reserve Bank of India (RBI) forced Coinbase to halt its trading service in the country last year.
Indian Authorities’ Stance on Cryptocurrencies
In recent years, Indian authorities have maintained a cautious approach towards cryptocurrencies and emphasized the importance of international collaboration in managing these digital assets. The G20 countries recently endorsed the recommendations by the Financial Stability Board (FSB) for the regulation and oversight of crypto-assets activities and markets. The statement also highlights the need for coordinated efforts and global implementation of FATF standards to address money laundering and terrorism financing risks.
The article was updated with Coinbase’s statement to correct an earlier version that suggested Coinbase planned to discontinue services in India based on customer emails.
