Amidst regulatory challenges in India, Coinbase, a global cryptocurrency platform, is set to discontinue its services for Indian users by the end of this month. The move comes after Coinbase’s CEO, Brian Armstrong, visited India and raised concerns about the informal restrictions imposed on crypto trading by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).
Armstrong attributed the decision to halt trading services in India to “informal pressure” from the RBI. According to reports from TechCrunch, Coinbase has notified its Indian customers of the service discontinuation, advising them to withdraw any funds from their accounts by September 25.
Furthermore, Coinbase has disabled the option for new users in India to sign up on its exchange and encouraged them to download Coinbase Wallet instead. The crypto exchange had initially launched its exchange services in India in May of the previous year but had to suspend payments via the Unified Payments Interface (UPI) due to the informal restrictions imposed by the RBI.
Several banks in India had taken similar actions, disabling UPI options for crypto-related payments following verbal instructions from the NPCI. The topic of cryptocurrency regulation was discussed at the recent G20 Summit in New Delhi, with Finance Minister Nirmala Sitharaman indicating that the G20 would make decisions regarding the regulation or potential banning of crypto assets.
Indian Prime Minister Narendra Modi also highlighted cryptocurrency as a new and significant aspect of social order and monetary stability, emphasizing the need to establish global standards for crypto regulation, drawing inspiration from the Basel standards applied to banking regulations.
Coinbase used to provide a range of services in India, similar to its offerings in other countries. These services included:
Buying and Selling Cryptocurrencies: Coinbase allowed Indian users to buy and sell a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others. Users could trade these digital assets against major fiat currencies like the Indian Rupee (INR).
Wallet Services: Coinbase offered cryptocurrency wallet services, allowing users to securely store their digital assets. These wallets provided an added layer of security for users’ holdings.
Trading Platform: Coinbase provided a user-friendly trading platform with real-time price charts and order execution capabilities. Users could place markets and limit orders to trade cryptocurrencies.
Mobile App: Coinbase offered a mobile app that allowed users to manage their cryptocurrency holdings, trade on the go, and stay updated on price movements and market news.
Crypto-to-Crypto Conversions: Users could convert one cryptocurrency to another through Coinbase’s platform, facilitating diversification and investment strategies.
Educational Resources: Coinbase provided educational resources and articles to help users understand cryptocurrency and blockchain technology better.
API Integration: Coinbase’s API allows developers to integrate cryptocurrency services into their applications, enabling various use cases.
Security Features: The platform offered security features such as two-factor authentication (2FA) and cold storage for digital assets to enhance user protection.