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The prominent cryptocurrency exchange – Coinbase – has reportedly halted new customer registrations on its platform in India.
Nonetheless, the firm remains dedicated to the Asian nation despite recent speculation regarding a potential exit from the local market.
Sign-ups Suspended
As per a TechCrunch article, Coinbase ceased new registrations in India in June of this year. A representative from the company provided further insight:
“We stopped allowing new user sign-ups on our exchange product in India back in June of this year. 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 continue to explore ways to strengthen our presence in this important market.”
The platform commenced operations in India in April of the previous year, allowing users to access trading services via the local Unified Payments Interface (UPI) payment system. However, the management team of the latter did not recognize Coinbase’s expansion into India, leading the exchange to discontinue support for the payment method shortly thereafter.
Brian Armstrong (CEO of the exchange) has expressed discontent with the position that the central bank of India has taken towards cryptocurrencies over the past year. He remarked that trading with digital assets is not prohibited in the country, but there are “elements in the government there, including at the Reserve Bank of India, who don’t seem to be as positive on it.”
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“And so they — in the press, it’s been called a ‘shadow ban,’ basically, they’re applying soft pressure behind the scenes to try to disable some of these payments, which might be going through UPI,” the executive added.
As reported by CryptoPotato in May of this year, several Indian advocacy groups have called on the domestic government to reinstate the use of UPI for cryptocurrency exchanges operating within the country. India’s Bharat Web3 Association (BWA) was also anticipated to present a similar proposal.
Coinbase’s Recent Global Initiatives
In addition to navigating regulatory hurdles in India, the trading platform has also been facing scrutiny from regulators in its home country – the United States.
Its primary challenges have stemmed from the US Securities and Exchange Commission (SEC), which initiated an investigation in 2022, alleging that some cryptocurrencies listed on the platform are unregistered securities. This year, the SEC intensified its actions, issuing a Well Notice and filing a lawsuit against Coinbase.
It is not surprising that the platform has taken measures to expand internationally in light of the challenges posed by American regulators. It has focused on Europe (specifically, the United Kingdom) and launched Coinbase International Exchange, an entity based in Bermuda that caters to non-US institutional clients.
As reported last week, the company has also begun to bolster its position in the US by providing crypto loans to local investors. Prime customers have reportedly accessed nearly $60 million through the lending program.
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