- Coinbase has temporarily halted new user sign-ups for its exchange product in India, but the company reaffirms its commitment to the country. This decision follows recent emails sent to Indian customers, informing them of the cessation of exchange operations after September 25. Some users not meeting updated standards received these emails, while others remain unaffected.
- Coinbase's exchange app in India has fewer than 50,000 monthly active users but maintains a significant presence among crypto enthusiasts. Despite efforts to establish itself in India, Coinbase has faced challenges in making progress with local authorities, including issues with the National Payments Corporation of India (NPCI) and the Reserve Bank of India. Cryptocurrency trading is not illegal in India, but regulatory complexities and "soft pressure" from authorities have hindered Coinbase's operations in the country.
Why it matters
Coinbase's decision to suspend new user sign-ups in India and its ongoing struggles with local authorities highlight the regulatory challenges faced by cryptocurrency exchanges in the country. The G20 countries' recent endorsement of recommendations for crypto-assets regulation underscores the global push for coordinated and comprehensive frameworks for managing digital assets, further emphasizing the importance of regulatory clarity in the cryptocurrency industry.
