Coinbase’s journey into the Indian crypto market has been marked by challenges since the beginning of its launch.
Leading American crypto exchange Coinbase has issued a clarification regarding the termination of its exchange services for Indian users. In a move that has raised eyebrows within the virtual asset community, Coinbase sent out emails to certain customers in India, notifying them that all services would come to a halt after September 25.
This notification was accompanied by a strong recommendation for users to withdraw any remaining funds from their Coinbase accounts. However, as Coinbase has clarified, this action is not a sweeping shutdown for all Indian users but a targeted response to those who have breached the platform’s standards.
Coinbase to End Certain Services for Selected Customers in India
According to a Coinbase spokesperson, this action is aimed solely at users who have been found to violate the company’s new terms of service. The US-based company said it would disable retail services for selected Indian customers, violating its rules.
“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,” a Coinbase spokesperson told Cointelegraph.
The undisclosed spokesperson also explained that the service termination does not impact users’ access to Coinbase Cloud services. This means that while some features may no longer be available for those accounts not meeting the updated standards, users can still engage with other functionalities provided by the exchange.
The company reassured affected users that their funds are safe on the platform, but they have until the end of this month to withdraw their assets. It revealed:
“Affected users’ funds remain safe with us, and they will continue to be able to withdraw their balances and send them to other crypto service providers until September 25.”
Coinbase Committed to the Indian Market
The initial report regarding the termination of services garnered significant attention on social media, with many prominent figures in the crypto space sharing the news on X, formerly Twitter. According to the initial reports, Coinbase has stopped accepting new sign-ups from Indian users.
However, it’s important to note that the exchange had already ceased accepting new user sign-ups for its products and services in India back in June. Instead, the company encouraged new Indian users to download Coinbase Wallet, a separate crypto wallet application owned by the company.
Despite the new developments, Coinbase said the exchange is committed to the Indian market over the long term.
“We maintain a robust tech hub in the country and offer live products, including our Coinbase Wallet. We are committed to India over the long term and will continue to explore ways to strengthen our presence in this important market,” explained the company.
Coinbase Faces Challenges in India
Meanwhile, Coinbase’s journey into the Indian crypto market has been marked by challenges since the beginning of its launch. Despite being an investor in Indian crypto exchanges CoinDCX and CoinSwitch Kuber, the firm faced difficulties establishing a stable presence for its business offerings.
The company saw some high-level executives resign from their positions, including Durgesh Kaushik, the company’s former senior director of market expansion.
Coinbase’s CEO Brian Armstrong personally launched the exchange service in India, initially supporting the popular United Payments Interface (UPI) payment method. However, local authorities declined to recognize Coinbase’s India launch, leading to the suspension of UPI support.
Throughout its 18-month effort to establish itself in India, Coinbase expressed its commitment to collaborate with the National Payments Corporation of India (NPCI) and other relevant authorities. The company also mentioned exploring alternative payment methods, although these efforts did not come to fruition.
In May 2022, Coinbase decided to halt its trading services in India, attributing the move to “informal pressure” from the Reserve Bank of India, the country’s central bank.