Coinbase Now Shuts Doors In India Amid Regulatory Struggles
- Coinbase will halt trading for Indian users on September 25, advise fund withdrawals, and block new registrations.
- India’s re-entry efforts fail, leading to the departure of key executives.
- The exchange expands globally, entering the crypto lending sector for US institutional clients amid increasing crypto regulation worldwide.
Coinbase, the popular cryptocurrency exchange, has announced its decision to halt trading services for Indian users, effective September 25.
According to TechCrunch, the company informed its customers through email, advising them to promptly withdraw all funds from their accounts. Additionally, the exchange has suspended user registration for Indian residents.
This move follows a challenging 18-month effort by Coinbase to reestablish its presence in the Indian market.
Despite its attempts, the exchange failed to gain traction with local authorities, resulting in the departure of key executives, including Durgesh Kaushik, who had joined as Senior Director for Market Expansion just last year.
Coinbase had previously initiated its India launch with support for the Unified Payments Interface (UPI), a popular local payment method. However, the UPI overseeing body declined to acknowledge its India launch, leading to the suspension of UPI support by the exchange.
Reports suggest that Coinbase has already disabled new user registrations for its exchange in India and encouraged existing users to switch to the Coinbase Wallet. Indian customers have been advised to withdraw any funds held in their accounts.
While the exchange is exiting the Indian market, it continues to expand its services globally. Recently, the company announced its plans to venture into the crypto lending business for US institutional clients.
The decision to withdraw from India comes amid an evolving regulatory landscape for cryptocurrencies in the country. Indian authorities have maintained a cautious approach to cryptocurrencies, emphasizing the importance of international collaboration in regulating these digital assets.
The recent G20 Leaders’ Declaration endorsed recommendations for the regulation and oversight of crypto-assets and global stablecoin arrangements, reflecting the growing global attention on cryptocurrency regulation.
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