Coinbase addresses India closure reports

Coinbase, the renowned cryptocurrency exchange, has issued a clarification regarding its operations in India following circulating reports suggesting a complete cessation of services for its Indian customers. Reports published on September 11, as covered by TechCrunch and Economic Times, detailed that Coinbase India users received email notifications, indicating a cessation of all services by September 25, and urging them to withdraw any remaining funds from the platform.

Nevertheless, it has come to light that the said notice was not aimed at all Indian customers but specifically targeted those who were allegedly in breach of Coinbase’s revised operational standards. The message conveyed in the email dated September 8 was shared by a Coinbase spokesperson with Cointelegraph, stating, “We are reaching out to inform you that we will be discontinuing all Coinbase Retail services linked to your above-mentioned account, as we will be disabling access for the retail accounts that no longer meet our updated standards for these services.”

The email further clarified that this action would not impact users’ access to or utilisation of Coinbase Cloud services, emphasising that such services would remain accessible through their respective accounts.

The spokesperson reiterated that the email was exclusively dispatched to account holders whom Coinbase had identified as non-compliant with their “updated standards.” They elaborated that this action resulted from a routine review of their systems, which had identified some accounts as no longer meeting the company’s updated criteria. Affected users were assured that their funds remained secure with Coinbase and that they could continue to withdraw their balances and engage with other crypto service providers until the stipulated date of September 25.

Although the initial report by TechCrunch gained considerable traction on social media, including acknowledgment from prominent accounts on X (formerly known as Twitter), such as Wu Blockchain, it is essential to highlight that Coinbase had already ceased new user sign-ups for its exchange product in India as of June this year. The company clarified that this change exclusively pertains to exchange accounts and does not affect its wallet application, Coinbase Wallet, which remains available for download and use by Indian users.

Coinbase’s statement emphasised its long-term commitment to the Indian market, mentioning that it maintains a robust tech hub within the country and continues to explore opportunities to bolster its presence.

Coinbase initially launched its operations in India on April 7, 2022. However, just days later, on April 11, the exchange suspended payment services through the United Payments Interface (UPI) on its platform due to regulatory pressures from local authorities. Indian users who had acquired cryptocurrencies on the platform prior to the UPI shutdown were granted the ability to engage in peer-to-peer (P2P) trading with existing crypto assets in their wallets. Presently, Indian users on Coinbase can solely transfer existing crypto assets from their accounts.

Coinbase’s recent communication underscores its commitment to maintaining a secure and compliant user base in India while further exploring avenues to expand its presence in this significant market.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us