In recent days, a whirlwind of confusion engulfed the crypto community in India, following reports that Coinbase, a prominent cryptocurrency exchange, was planning to cease operations in the country. The reports, which originated from TechCrunch and Economic Times on September 11, indicated that Coinbase had sent out emails warning certain users in India to withdraw their funds by September 25 as services would be discontinued.
However, this seems to have been a case of miscommunication. A spokesperson from Coinbase clarified that the notice was not meant for all Indian users but was targeted at those who were found to be breaching the exchange’s updated standards. The email, dated September 8, stated that the discontinuation of services was only applicable to retail accounts that did not comply with the new standards set by the exchange. Importantly, the affected users would still have access to Coinbase Cloud services through their accounts.
In a further statement, the spokesperson emphasized that the email was a part of a routine review where some accounts were identified as non-compliant with the updated standards. These accounts would be disabled, but customers would have the opportunity to update their information at a later date. Moreover, the funds of the affected users remain secure, and they can still withdraw their balances or transfer them to other crypto service providers until September 25.
Adding to the confusion was the report that new user sign-ups for the exchange service in India had been halted, directing them instead to download the Coinbase Wallet application. This, however, has been the case since June and only affects exchange accounts, not the wallet service. The spokesperson reiterated Coinbase’s commitment to the Indian market, stating that they continue to explore avenues to strengthen their presence in this significant market.
Coinbase had officially launched in India on April 7, 2022, but faced regulatory pressures which led to the suspension of United Payments Interface (UPI) services just days later on April 11. Despite this, Indian users could still engage in peer-to-peer trading using the crypto assets in their wallets. As of the latest update, users can only withdraw existing crypto assets from their accounts.
This episode serves as a reminder of the dynamic and sometimes turbulent nature of the crypto space, especially in emerging markets like India. It also underscores the importance of clear communication in maintaining trust and stability in the sector.
