Coinbase, the cryptocurrency exchange platform, has revealed its intentions to cease operations in India in response to the country's increasingly stringent cryptocurrency regulations. Users of Coinbase received a warning email, as reported by The Economic Times, informing them that they would have until September 25 to utilize the app to withdraw any remaining funds. Additionally, the platform has suspended the onboarding of new users. These emails were sent to users starting on Sunday, September 11.
A spokesperson for Coinbase confirmed this decision to the publication. According to the spokesperson, "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 has not detailed the specifics of these "updated standards." This development comes a few months after Coinbase appointed Durgesh Kaushik, the former head of Snap India, as senior director for market expansion.
Coinbase initially launched its services in India in April of the previous year, offering users the option to purchase cryptocurrencies like Bitcoin, Dogecoin, and Ethereum through UPI (Unified Payments Interface). Shortly after its launch, Coinbase was compelled to discontinue the UPI payment option due to government intervention. Users were then required to use alternative payment methods for cryptocurrency transactions, as UPI is overseen by the National Payments Corporation of India. Around the same time, the government announced its intention to levy a 30 percent tax on income generated through cryptocurrency.
Approximately a month after suspending the UPI payment option, Brian Armstrong, the co-founder and CEO of Coinbase, indicated that the action was a response to informal pressure from the Reserve Bank of India (RBI). He clarified that cryptocurrency trading is not illegal in India but suggested that certain "elements in the government" had exerted "soft pressure."
Interestingly, during the recently concluded G20 meeting in New Delhi, Prime Minister Narendra Modi addressed the need to establish a framework for the operation of cryptocurrencies. He emphasized the necessity of developing global standards for cryptocurrency regulation and cited the Basel standards for banking regulations as a potential model.
Coinbase had previously announced its intention to discontinue operations in Japan in January due to similar government pressure.
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