Coinbase India Revamps Crypto Service Amid Regulatory Struggle
Crypto exchange Coinbase has made significant changes to its customer offerings, according to recent reports. Techcrunch cited a recent email communication where Coinbase announced its intention to discontinue all exchange services for Indian customers after September 25.
The report comes on the sidelines of the G20 Summit under the presidency of India.
Coinbase to Make Changes to Customer Offerings Amid India Struggles
A recent report by Techcrunch noted that Coinbase has advised Indian customers to withdraw any funds from their accounts before the cutoff date of September 25.
Earlier reports claimed that Coinbase is exiting out of India amid regulatory struggles. But, the exchange might only be tightening rules for all customers.
Other users, however, claim to have never received any such notice. It appears that the email was only sent to some account holders who were found to breach the updated standards during a routine system review.
This means that Coinbase is only targeting user accounts that do not meet the updated rules. The email further emphasized that this move does not impact users’ access to Coinbase Cloud services.
Read more: Coinbase Vs Robinhood: Which Is The Best Crypto Platform?
Coinbase made a debut in the Indian market last year. But, local challenges marred Coinbase’s 18-month struggle to establish a strong presence in India.
Shortly after the launch of Coinbase India in April 2022, UPI support on the platform was suspended. Coinbase CEO Brian Armstrong later disclosed that the decision to halt business operations in India was driven by “informal pressure” from the country’s central bank in a Q1 earnings call.
The National Payments Corporation of India (NPCI) also stated its lack of awareness of any crypto exchange using its instant payment system. As per reports, the challenges led to the exit of key executives, including the Senior Director for Market Expansion, Durgesh Kaushik.
G20 Summit Decides Direction for Crypto
These developments are unfolding against the backdrop of the G20 Summit in India. The country, currently holding the G20 Summit presidency, aims to seek consensus on cryptocurrency recommendations outlined in a policy paper. Indian Finance Minister Nirmala Sitharaman has indicated that a global framework for cryptocurrency asset regulation is in progress.
After the G20 meeting, it is clear that India is evaluating the recommendations put forth in a paper authored by two global agencies. Ajay Seth, Secretary of the Department of Economic Affairs, confirmed that the paper by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), which outlined a roadmap for regulating crypto assets and integrating digital assets into the financial system, is being studied.
India has been consistently high-ranked in crypto ownership and use. Source: Statista / The Wire
During an interview, Gita Gopinath, the Deputy Managing Director of the IMF, voiced apprehension around countries’ divergent approaches concerning cryptocurrency. While acknowledging the necessity for customized regulatory measures, Gopinath underscored the general crypto standards for nations.
Meanwhile, the leaders of the G20 nations have jointly issued a call for a prompt framework.
Read more: Digital Rupee Tutorial — How to Use India’s CBDC e-Rupee
G20’s consensus declaration notes,
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions.”
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