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Coinbase India clarifies its position after misleading reports of service termination | Coinbase India News

Coinbase India clarifies its position after misleading reports of service termination | Coinbase India News

Coinbase India clarifies after misleading reports of service termination

Coinbase, largest cryptocurrency exchange in USA and one of the leading cryptocurrency exchanges in the world, has issued a clarification after some reports suggested that it would soon stop all operations for its Indian customers.

According to some media outlets, such as TechCrunch and Economic Times, Coinbase India users received an email on Sept. 8, warning them that all services would be discontinued by Sept. 25 and urging them to withdraw any funds that remained on the exchange. Is Coinbase leaving Indian markets ? Let’s find it out.

What did the email say?

The email that was shared by a Coinbase to users said:

“We are reaching out to inform you that we will be discontinuing all Coinbase Retail services linked to your above-mentioned account, as we will be disabling access for the retail accounts that no longer meet our updated standards for these services. Please note that this does not impact your access to/use of Coinbase Cloud services which will continue to be accessible to you through your account.”

Coinbase added that “Affected users can withdraw their balances and send to other crypto service providers until 25 September. Coinbase will continue to raise the bar to ensure the best possible experience for the crypto community.”

Is Coinbase ending operations in India ?

According to a Coinbase spokesperson, the email was only sent to account holders who breached their “updated standards” and that it was possible that some accounts were identified during a routine review of their systems. The spokesperson did not specify what the updated standards were or how many accounts were affected by the decision. However, they reiterated that Coinbase was committed to India over the long term and that they would continue to explore ways to strengthen their presence in this important market.

The original report from TechCrunch had caused a lot of confusion and panic among the crypto community in India, as it was widely shared on social media platforms like X (formerly known as Twitter), including by influential accounts like Wu Blockchain.

So as of now Coinbase is not ending its operation in India.

What is the current status of Coinbase in India?

Coinbase launched its operations in India on April 7, 2022, with a vision to create a more inclusive global financial system. However, just four days later, on April 11, the exchange had to suspend payment services through United Payments Interface (UPI) on its platform for Indian users due to pressure from local regulators.

For context, UPI is a popular payment system in India that allows users to transfer money instantly using their mobile phones.

Since then, Indian users who had purchased crypto before the UPI shutdown could trade existing crypto assets in their wallets with other users through peer-to-peer (P2P) trading. However, as of now, Indian users on Coinbase are only able to withdraw existing crypto assets from their accounts.

Moreover, Coinbase has also stopped allowing new user sign-ups on its exchange product in India since June of this year. Instead, it directs them to download its wallet application, Coinbase Wallet, which allows users to store, send, and receive cryptocurrencies. Coinbase Wallet is different from Coinbase Exchange, which allows users to buy and sell cryptocurrencies using fiat currencies.

Coinbase Wallet is still available and functional for Indian users.

What is the future of Coinbase in India?

Despite the challenges and uncertainties faced by Coinbase in India, the exchange has not given up on its plans to expand its presence in this market. Coinbase has established a robust tech hub in India and has hired several talented engineers and developers to work on its products and services.

Coinbase has also expressed its interest in supporting the growth of the crypto ecosystem in India by investing in local startups and entrepreneurs. Coinbase believes that India has a huge potential for crypto adoption and innovation and wants to be a part of it.

Coinbase hopes that the regulatory environment in India will become more favorable and clear for crypto businesses and users in the near future. Coinbase also hopes that its Indian customers will continue to support and trust them as they work hard to provide them with the best possible crypto experience.

Author’s Take

Initially the email from Coinbase was misinterpreted by some media outlets. The media claimed a complete shutdown of Coinbase in India. This is a important learning for everyone who doesn’t verify and cross-check the source of information.

As for crypto, we have talked about it before, India’s stance on cryptocurrency is quite unclear. The government and RBI (Reserve Bank of India) are trying hard to restrict the buying and selling of cryptocurrency, which they have successfully done for the most part. Imposing tax on crypto gains, restricting banks from catering to crypto companies and banning the purchase of crypto using UPI are some of it. But as like in the USA, the Supreme Court has come to the rescue of crypto in India. Will the Supreme Court (legal system) rescue crypto again is difficult to assume.

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