Coinbase India Closes Due to Regulatory Issues

Coinbase India Closes Due to Regulatory Issues

The prominent cryptocurrency exchange Coinbase has decided to suspend trading services for Indian users as of September 25.

According to a TechCrunch report, the company has formally notified its consumers via email to withdraw all funds from their accounts immediately.

In addition, the cryptocurrency exchange has temporarily suspended the registration of new Indian citizens.

This strategic move follows Coinbase’s 18-month-long effort to reestablish its presence in the Indian market.

Despite earnest efforts, the exchange could not garner local authorities’ support, resulting in the departure of key executives, including Durgesh Kaushik, who assumed the position of Senior Director for Market Expansion only a year ago.

Coinbase’s entry into the Indian market began with the addition of support for the Unified Payments Interface (UPI), an extensively adopted local payment method.

However, the UPI governing body refused to officially recognize Coinbase’s entrance into India, resulting in the exchange suspending UPI support.

According to reports, Coinbase has already disabled the ability for new users to register on its platform in India and urged existing users to switch to the Coinbase Wallet.

Customers from India have been advised to withdraw all funds from their accounts.

Coinbase holds investments in Indian cryptocurrency exchanges, including CoinSwitch Kuber and CoinDCX.

While Coinbase is ceasing operations in the Indian market, the company remains devoted to expanding its services globally.

Recently, the company announced its intention to enter the cryptocurrency lending market, targeting institutional customers in the United States.

This decision to withdraw from the Indian market coincides with the country’s evolving regulatory environment encircling cryptocurrencies.

Indian authorities have adopted a cautious approach to regulating cryptocurrencies, emphasizing the significance of international cooperation in overseeing these digital assets.

The recent G20 Leaders’ Declaration endorsed recommendations for regulating and supervising crypto-assets and global stablecoin arrangements, reflecting the growing international focus on regulating cryptocurrencies.

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