Mumbai, India – In a recent development, Coinbase, the leading cryptocurrency exchange, has temporarily halted new customer registrations in India. This move, made in June of this year, has raised questions about the company’s future in the Indian market. However, Coinbase has reiterated its commitment to India, dispelling rumors of a potential withdrawal.
According to a report by TechCrunch, Coinbase confirmed the suspension of new user sign-ups in India earlier this year. A spokesperson from the company provided further insight, stating, “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.”
Coinbase initially launched its operations in India in April of the previous year, enabling clients to engage in trading services using the local Unified Payments Interface (UPI) payment system. However, the Indian authorities did not officially acknowledge Coinbase’s expansion, leading the platform to terminate support for the UPI payment system shortly thereafter.
Brian Armstrong, CEO of Coinbase, has criticized the Reserve Bank of India’s stance on cryptocurrencies over the past year. He noted that trading with digital assets is not illegal in the nation, but he pointed out that “elements in the government there, including at Reserve Bank of India, who don’t seem to be as positive on it.”
Armstrong went on to mention that there appears to be a “shadow ban” in place, where soft pressure is applied behind the scenes to restrict certain payments possibly going through UPI.
Earlier this year, advocacy groups in India called on the government to restore the use of UPI for cryptocurrency exchanges operating in the country. The Bharat Web3 Association (BWA) was also expected to submit a similar proposal.
Coinbase’s Global Efforts Amid Regulatory Challenges
Coinbase has not only been dealing with regulatory challenges in India but also in its home country, the United States.
In 2022, the U.S. Securities and Exchange Commission (SEC) launched an investigation, accusing some cryptocurrencies listed on the platform of being unregistered securities. The SEC escalated its actions this year, issuing a Well Notice and a lawsuit against Coinbase.
In response, Coinbase has taken steps to expand its global presence. The company set its sights on Europe, specifically the United Kingdom, where it launched Coinbase International Exchange, an entity based in Bermuda catering to non-U.S. institutional users.
Recently, Coinbase has also been strengthening its position in the United States by offering crypto loans to local investors. Prime customers have reportedly distributed nearly $60 million through the lending program, signaling the platform’s commitment to growth and innovation in the cryptocurrency space.
