Coinbase Exchange decided “not to leave” the Indian crypto market despite the regulatory pressure.
Coinbase is a US-based, highly reputed crypto exchange. The majority of retail and institutional investors choose Coinbase’s crypto services to trade cryptocurrencies. Since April 2022, this exchange has been providing services in the Indian jurisdiction, despite there being no crypto rules and regulations in the country.
Just a few days ago, the Coinbase India team sent an email to the Indian customers that it is going to shut down the platform for the Indian customers from September 25 due to the increasing regulatory burden on the exchange.
Coinbase has suspended the registration of new customers from India and has also suggested that existing customers use the Coinbase wallet to transfer and hold the funds, the funds that customers hold on the Coinbase exchange.
Later, a spokesperson for Coinbase confirmed that the email was only sent to some specific Coinbase India customers, who did not follow the exchange’s terms and conditions.
The spokesperson said the exchange suspended registration of new users in June this year but is still committed to providing services in the Indian jurisdiction.
Initially, the TechCrunch platform published a report on this issue on behalf of Coinbase’s email, which was only sent to some specific customers.
Later TechCrunch updated its report and confirmed that Coinbase will not exit the Indian crypto market.
Coinbase, UPI and controversy
In April last year, Coinbase Exchange jumped into the Indian market but failed to get approval for UPI banking service support, the simplest and easiest mode of payment system in India.
Later, UPI payment system developer NPCI responded to this issue and confirmed that no crypto company had been instructed to use the UPI payment service in crypto-related businesses. After that, majority of the Indian crypto exchanges have suspended the UPI payment method. At that time, the Indian crypto investors were faced with a huge problem, which was the lack of UPI services on the crypto exchanges.
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