Coinbase is limiting its services to Indian users who failed to meet Coinbase’s newly adjusted guidelines.
Coinbase, a leading cryptocurrency exchange, has stepped forward to clarify its position on offering services in India.
Recent media reports, including those from TechCrunch and Economic Times, had stirred the pot, suggesting that Coinbase was on the verge of shutting down its services for Indian users by September 25th.
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These reports led to a broad interpretation that all Indian customers need to withdraw their remaining funds from the platform. However, as it turns out, this information wasn’t entirely accurate.
In response to the circulating claims, a Coinbase spokesperson shed light on the situation by sharing a letter that was issued to some India-based 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.
The statement excerpt confirms that the action was focused on accounts that failed to meet Coinbase’s newly adjusted guidelines, not a blanket shutdown of services in India.
We will therefore be disabling these accounts, and allow customers to update their information at a later date.
Customers with such accounts can still withdraw or transfer their balances to other crypto service providers until September 25th.
On top of that, reports suggested that Coinbase had stopped new user registrations for its exchange services in India. On this matter, the spokesperson clarified:
We stopped allowing new user sign-ups on our exchange product in India back in June of this year. We maintain a robust tech hub in the country and offer live products, including our Coinbase Wallet. We are committed to India over the long term and continue to explore ways to strengthen our presence in this important market.
Coinbase first rolled out its services in India on April 7th, 2022. However, due to regulatory pressures, the crypto exchange had to suspend United Payments Interface (UPI) payment services just days later, on April 11th. Since then, existing Indian users have been able to trade crypto assets through peer-to-peer, or P2P, methods.
However, while some crypto exchanges limit their services to Indian users, others are gearing up to enter the market. OKX is setting its sights on the Indian market with plans to expand Web3 application services and hire locally.
The recent clarification by Coinbase puts to rest the rumors of a wholesale exit from the Indian market. While the crypto exchange has imposed limitations on accounts that don’t meet its revised standards, the majority of its services remain intact.