As Coinbase aims to take on the massive Indian crypto market, numerous challenges persist. Amid seemingly cessation of the exchange’s services for some Indian customers, there’s much more to this perceptibly developing narrative. In a twist of events, Coinbase communicated termination of services after September 25 to few accounts. However, this doesn’t translate to an overall shutdown of operations in India. In a path toward revised standards, Coinbase identified accounts that failed to adhere to the set rules and took appropriate action.
As maintained by their spokesperson, the crypto giant will continue offering its Cloud services while restricting new user registrations on their primary platform in India. Yet, it doesn’t spell negotiation of service, as prospective crypto enthusiasts are directed to download the separate Coinbase Wallet application.
Despite investments in top local crypto exchanges like CoinDCX and CoinSwitch Kuber, stable presence for its exchange services continue to remain intangible. High-profile exits such as Durgesh Kaushik, the Senior Director for Market Expansion, underscore the intricacy of negotiating with local authorities. Even Brian Armstrong, Coinbase’s CEO, had to step in to personally launch the exchange service supporting the well-received UPI payment method. Nevertheless, the governing body declined recognition of Coinbase’s launch, leading to UPI support suspension not long after.
A sizeable portion of the story lies in the crypto behemoth’s confrontation with regulatory hindrance by the central bank, the Reserve Bank of India. Citing “informal pressures” from the bank, Coinbase suspended its trading services in May 2022, reflecting another setback in its pursuit of tapping into the Indian crypto market.
However, the winds are seemingly shifting, with India now advocating for a global crypto regulatory structure. As the chair of the G20, India is pushing for member nations to globally regulate cryptocurrencies. Following the call, G20 leaders have secured a declaration in favor of crypto regulation guidelines proposed by esteemed organizations such as the IMF and FSB.
In essence, the saga of Coinbase in India is a mosaic of regulatory hurdles, authority negotiation, and strategic revisions, highlighting the complexities of adapting to diverse market standards in the blockchain universe. It further underscores the obligatory role of clarified and comprehensive regulations in shaping the future of cryptocurrencies visa-vis traditional financial systems.
Source: Cryptonews
