Coinbase Clarifies Stance in India: Disables New Sign-ups, But Remains Committed

Summary

• Coinbase stated that it disabled new Indian user sign-ups for its exchange product in June due to updated standards but remains committed to the country.
• Existing Indian users received a notice about discontinuing Coinbase Retail services, but it does not affect access to Coinbase Cloud services.
• Coinbase maintains its dedication to the Indian market and continues to operate a tech hub in India, offering products like Coinbase Wallet.

In response to recent reports from popular news outlets like TechCrunch and The Economic Times, Coinbase has clarified its stance on its services in India. While the company did disable new user sign-ups for its exchange product in June, it emphasized its ongoing commitment to the country. Coinbase cited the need to maintain updated standards as the reason for disabling new sign-ups and stated that this action did not reflect its overall operations in India.

Coinbase earlier sent a notice via email to the affected Indian users:

“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," 

“Please note that this does not impact your access to/use of Coinbase Cloud services which will continue to be accessible to you through your account,” the notice added.

A spokesperson for Coinbase reaffirmed their dedication to the Indian market, saying, "We are committed to India over the long term and continue to explore ways to strengthen our presence in this important market." Despite the suspension of new user sign-ups, Coinbase still maintains a significant tech hub in India and offers live products, including the Coinbase Wallet.

Coinbase's entry into the Indian market has faced challenges for over a year. Despite efforts by CEO Brian Armstrong to launch the exchange service and support the popular UPI payment instrument, local authorities have been uncooperative. The Reserve Bank of India's informal pressure led Coinbase to suspend its trading service in India last year.

While crypto trading is not illegal in India, government entities have exhibited mixed sentiments towards it. The recent G20 Leaders' Declaration emphasized the need for global collaboration in regulating crypto-assets and stablecoins, indicating that the cryptocurrency landscape in India and worldwide remains dynamic.