Key Takeaways
- Coinbase Global Inc., a U.S-based crypto exchange, is disabling certain Indian accounts that no longer meet their updated standards.
- The decision comes amid a decline in crypto trading volume in India due to stringent tax regulations and central bank concerns.
- Users’ reactions reflect disappointment in Coinbase’s evolving stance, highlighting the challenges faced by crypto enthusiasts in India.
The U.S.-based crypto exchange Coinbase Global Inc. has announced that it will be disabling certain Indian accounts. The company added to this comment that the company remains “committed” to opportunities that are going to be presented in the nation over the long term. Let’s dive into the details of this decision.
Account Disabling
According to Coinbase, Indian accounts that “no longer meet our updated standards” will get disabled on September 25, according to a spokesperson who released that statement on Monday. According to the spokesperson, the firm commented that it will continue to “explore ways to strengthen our presence in this important market.”
This decision has come at the tail of the collapse in trading volume in India in 2022 since the government imposed stringent tax rules on the crypto sector, including a levy on trading. The central bank also voiced “major concerns” about private virtual currencies.
The contrast between what happened and what was previously expected is worthy of note here. In April last year, Coinbase outlined ambitious hiring plans for India and tried to enable the use of the Unified Payment Interface, a nationwide quick-payments network for crypto purchasing via its exchange. The company then quickly scrapped the payments initiative when it came under robust regulatory pressure.
In June, the spokesperson added, “We maintain a robust tech hub in the country and offer live products, including our Coinbase Wallet.” However, this new decision is against all of the standards that the platform maintained previously.
The Community Reaction
Following the update, users’ reactions have been a mix of disappointment in the platform’s performance in India. Some responses on social media platform, X (formerly Twitter) are presented.
All in all, this is indeed a tough situation for crypto-enthusiasts in India since the government’s stance and central bank concerns have left Coinbase with no other option.
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