Coinbase Addresses Service Concerns in India Amidst Reports of Discontinuation

Coinbase has taken steps to clarify its recent actions following reports that it would be discontinuing services for its Indian customers. Contrary to initial concerns, it appears that the move is not affecting all Indian users but is instead targeted at those who fail to meet the exchange’s updated standards.

Reports on September 11, as covered by TechCrunch and Economic Times, indicated that Coinbase India users had received emails notifying them of the discontinuation of all services by September 25. Users were urged to withdraw any remaining funds from the platform.

However, Coinbase has clarified that this notice was not issued to all Indian customers but specifically to those who were found to be in breach of their updated standards. A Coinbase spokesperson shared an excerpt from the email sent on September 8, which stated, “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 email emphasized that this action would not impact access to or use of Coinbase Cloud services, which will remain accessible.

The spokesperson reiterated that the email was sent only to account holders who were identified as not meeting the updated standards. These accounts will be disabled, but customers will have the opportunity to update their information at a later date. Importantly, customer funds remain secure, and users can continue to withdraw their balances and transfer funds to other crypto service providers until September 25.

While the original report from TechCrunch gained significant traction on social media, it also suggested that Coinbase had ceased new user sign-ups from India, directing them to download Coinbase Wallet instead. However, Coinbase clarified that this restriction on new user sign-ups for the exchange product had been in place since June and pertains only to the exchange accounts, not the wallet application.

A Coinbase spokesperson emphasized the company’s commitment to the Indian market, stating, “We are committed to India over the long term and continue to explore ways to strengthen our presence in this important market.”

Coinbase initially launched its services in India on April 7, 2022. However, just days later, on April 11, it halted payment services through United Payments Interface (UPI) on its platform for Indian users due to regulatory pressure. Indian users who had purchased cryptocurrencies prior to the UPI shutdown could still engage in peer-to-peer trading with other users. As of the time of this publication, Indian users on Coinbase can only withdraw their existing crypto assets from their accounts.

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