June 24, 2024
Coinbase's Troubled History in India: From UPI Hopes to Regulatory Challenges
Policy & Regulation

Coinbase’s Troubled History in India: From UPI Hopes to Regulatory Challenges

The exchange has stated that although its exchange activities have been banned for many months, its other products, like the Coinbase Wallet, are still available to Indian users, and its technological centre is still operational.

The exchange sent an email to a select group of consumers on September 9 as a “friendly reminder” of an email dated June 26. This prompted the question. Screenshots of both emails were shared by a user, and CoinDesk has access to them. The majority of them were courteous reminders; however, new emails might have been sent to select clients.

The emails from June 26 and September 9 were delivered to some Indian users who were accessing its exchange product from countries other than India. Some people who were not Indians also received it. Customers were urged to request their money back by September 25, 2023.

Emails to the account stated that “we will be discontinuing all services” since they “no longer meet our updated standards for these services.” “Your funds remain secure with us,” it said, “and you can send funds to other cryptocurrency wallets or services (subject to customary network and transaction fees),” including Coinbase Wallet.

A spokeswoman for Coinbase stated that “some accounts may have been identified that no longer meet our updated standards” during a recent routine examination of their systems, but they will “allow customers to update their information at a later date.”

After Coinbase launched in India in April 2022, trading operations were terminated three days later. It had hailed Unified Payments Services, or UPI, as the core of its business activities in India. After only a few hours of operation, the UPI service’s governing body declared that it was “not aware of any crypto exchange” using UPI. After a short while, the Coinbase app stated that UPI facilities were “temporarily unavailable.” A few days later, some payment processors disconnected nearby cryptocurrency exchanges. Later, Ben Armstrong, the CEO of Coinbase, noted that “informal pressure” from the Indian central bank was the cause.

“We stopped allowing new user sign-ups on our exchange product in India back in June of this year,” a Coinbase spokesperson commented. “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.”

Arnab Kumar, the Director of India Market Expansion at Coinbase, is among the senior leadership who has just left the company.

The main components of Coinbase’s goals for India are its Wallet services and its technological hub, which it develops for the APAC region and the entire world. On April 4, 2022, Coinbase CEO Ben Armstrong announced that the company intended to increase its 300-person workforce at its Indian tech cluster by 1,000 people. However, the exchange fired 8% of its 400 staff in India in June when Coinbase’s trading debut in India was delayed on April 7 and cryptocurrency values fell.

Image: Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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