Coinbase, a cryptocurrency exchange has announced that it will halt its services, for users based in India on September 25th. This decision is due to non-compliance with the standards set by authorities. Users have been strongly advised to withdraw their funds before this date. New signups have been temporarily suspended. The action taken by Coinbase comes as a response to the hurdles faced in India and the discontinuation of its UPI service this year, in 2022.
Coinbase, the cryptocurrency exchange has recently announced that it will be ending its services for users, in India starting from September 25th. Users were informed about this decision through an email sent on Sunday, September 10th.
As per the email, users will still have access to Coinbase.com or the Coinbase app until September 25th, 2023. However, it is advised that they withdraw any funds they have in their accounts before that date. Furthermore, new user registrations for the Coinbase app in India have been temporarily put on hold.
A representative from Coinbase stated that this choice was made following a review that revealed some accounts were not meeting the company’s updated standards. Consequently, these non-compliant accounts will be deactivated. Affected customers will be allowed to update their information when the time comes.
Coinbase wants to emphasize that affected users can transfer their balances and move them to cryptocurrency service providers until September 25th. The company remains dedicated to enhancing its services for the crypto community.
Back in April 2022 Coinbase initially introduced its services in India. Allowed users to purchase cryptocurrencies using UPI (Unified Payments Interface). However due to pressure, after its launch, Coinbase had no choice but to discontinue UPI service.
Despite facing this setback Indian users still had the option to engage in peer-to-peer (P2P) trading using the cryptocurrencies they have in their wallets.
“A few days after our launch we had to disable UPI due to pressure from the Reserve Bank of India which’s similar to the Treasury in that country. In India, the Supreme Court has ruled against banning cryptocurrency. However, there are individuals within the government including those at the Reserve Bank of India who seem supportive of it ” Armstrong revealed during an earnings call.
Armstrong also mentioned that behind doors the RBI was applying “pressure” to discourage transactions and payments made through UPI.
Currently, Indian users on Coinbase can only transfer existing cryptocurrencies from their accounts. In an email sent to users, Coinbase assured them that their funds remain secure and they can still send funds to wallets or services (with network and transaction fees).
It’s important to note that Coinbase’s crypto services have been unavailable in India since disabling UPI last year. During that time the company also reduced its workforce by 8%. Furthermore, this global crypto exchange has made investments, in two crypto unicorns; Coinswitch Kuber and CoinDCX.
