In recent weeks, there’s been considerable uncertainty regarding the scope of Coinbase’s operations in India. The storm began when customers received communications from the exchange requesting them to evacuate their funds by September 25. Interestingly, amid the confusion, Coinbase clarified that it suspended its exchange services but continues providing wallet services and operating its technology hub in India.
Digging deeper, it appears these emails were originally dispatched on June 26 and a subsequent ‘friendly reminder’ was sent out in September. Notably, the communication was intended towards Indian users, using the exchange platform in non-Indian jurisdictions, along with some non-Indian users. The intent was to inform users that their accounts no longer met internal standards deemed necessary to continue usage. Despite the startling nature of the message, Coinbase assured users that their funds were secure and they still had the ability to transfer funds to other crypto wallets.
Following this incident, a Coinbase spokesperson shared that some accounts might have been identified as incompatible with their refreshed guidelines during a routine review. These users will be allowed to update their information at a later date.
It is worth reflecting on Coinbase’s journey in India. Launched in April 2022, trading services were suspended within three days owing to ‘informal pressure’ from India’s central bank. The initial suspension was linked to concerns from the authority behind India’s local digital payment service, Unified Payments Services (UPI), about whom Coinbase had originally held as central to their operations.
Despite these challenges, Coinbase remains committed to India, particularly through its tech hub and its Wallet services. Much of their focus seems directed towards building for the APAC region and the world. A testament to this vision was when Coinbase CEO Ben Armstrong announced plans to add a significant number to the existing staff at the Indian tech hub in April 2022.
However, recent developments indicate a slightly gloomier picture. Following their launch hiccup in April and a succeeding crash in cryptocurrency prices, Coinbase terminated 8% of its 400 employees in India in June. Moreover, several senior leadership members in India have left the organization recently.
Considering all this, it is evident that Coinbase’s operations in India have been rocky, shaped by regulatory pressures and market volatility. Navigating the complex and rapidly evolving landscape of crypto operations within the country remains an intense challenge. Despite setbacks, Coinbase’s commitment to India represents an interesting opportunity weighed down by local constraints.
Source: Coindesk
