Key Insights
- Coinbase plans to terminate services for some Indian customers.
- The decision comes after suspending new signups for Indian users and redirecting them to Coinbase Wallet.
- The termination is specifically for Indian customers who have violated Coinbase’s updated standards, with affected accounts being disabled while allowing users to update their information later.
Coinbase, a major cryptocurrency exchange listed on Nasdaq, is making changes to its services in India. The exchange has announced that it will either fully or partially terminate its services for Indian users.
This decision has been implemented by suspending new signups for Indian customers and redirecting them to download Coinbase Wallet, a self-custody cryptocurrency wallet.
Coinbase India Service Termination Scheduled for September 25
According to a TechCrunch report, Coinbase plans to cease all its services for Indian users, and it has already sent emails to its customers in India, notifying them of the service termination scheduled for September 25.
Users are also being encouraged to withdraw their funds from the platform.
However, Coinbase clarifies that this service termination is not a blanket decision for all Indian customers.
A spokesperson from the company stated that the termination is limited to Indian customers who have violated Coinbase’s standards.
Some accounts were identified during a routine review that no longer met the updated standards, and these accounts will be disabled.
Affected customers will have the opportunity to update their information at a later date.
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Challenges in the Indian Cryptocurrency Market
Coinbase entered the Indian market in April 2022, with the physical presence of its CEO Brian Armstrong indicating the importance of the Indian market for the exchange.
However, it faced challenges shortly after its launch, including the suspension of payments through the United Payments Interface (UPI) and a temporary halt to trading in India due to regulatory pressure.
Despite these setbacks, Coinbase has maintained a presence in India, with Sensor Tower data indicating it has less than 50,000 monthly active users in the country.
Additionally, Coinbase has investments in two prominent Indian cryptocurrency exchanges, CoinDCX and CoinSwitch Kuber.
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It’s worth noting that Coinbase recently launched crypto lending services for institutional clients in the United States, a move that followed the company’s decision to abandon its plan to launch lending services for retail clients in 2021 due to regulatory concerns.