There have been reports that the prominent cryptocurrency exchange, Coinbase, has temporarily disabled new customer registrations for its platform in India. Nevertheless, it’s important to note that the company remains firmly committed to the Indian market, despite recent speculations suggesting otherwise.
No More Business In India
In a recent report by TechCrunch, it was revealed that Coinbase made the decision to suspend new user sign-ups in India back in June of this year. To provide more insight into this development, a spokesperson from the company shared the following details:
“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, allowing users to access trading services through the local Unified Payments Interface (UPI) payment system. Unfortunately, the management team of UPI did not officially recognize Coinbase’s expansion into India, leading the cryptocurrency platform to discontinue its support for this payment method shortly thereafter.
Brian Armstrong, the CEO of Coinbase, has been critical of the Indian central bank’s stance on cryptocurrencies over the past year. He pointed out that while trading with digital assets is not illegal in the country, there appear to be certain elements within the government, including the Reserve Bank of India, that harbor reservations about the technology.
Challenges In India
In addition to grappling with regulatory challenges in India, Coinbase has been engaged in an ongoing battle with regulatory bodies in its home country, the United States.
One of its major challenges stems from the US Securities and Exchange Commission (SEC), which initiated an investigation in 2022. The SEC’s allegations centered around certain cryptocurrencies listed on the Coinbase platform, asserting that they qualified as unregistered securities. This year, the SEC escalated its actions, delivering a Well Notice and even filing a lawsuit against Coinbase.
Unsurprisingly, in response to these challenges with American regulators, Coinbase has taken steps to expand its global reach. It cast its gaze on Europe, with a particular focus on the United Kingdom, where it introduced the Coinbase International Exchange. This entity, headquartered in Bermuda, is designed to cater to non-US institutional users.
In a recent development, it was reported that Coinbase has been actively strengthening its position within the United States as well. The company has ventured into the crypto lending market, offering loans to local investors. Notably, the lending program has attracted significant interest from prime customers, with nearly $60 million being distributed through this initiative.
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