The Indian government has cracked down on cryptocurrency activities in recent years.
Cryptocurrency exchange Coinbase has revealed that it has halted its trading activities in India due to unofficial pressure from the Reserve Bank of India (RBI).
RBI, like many central banks around the world, has been strict against cryptocurrency trading activities. At some point, the RBI banned financial institutions from participating in crypto-related services.
Coinbase launched its services in India on 7 April but withdrew its decision three days later. The Coinbase app allowed users in India to buy crypto tokens using UPI, a highly popular Indian payment infrastructure built by a coalition of retail banks in the country.
UPI refused to acknowledge support for the Coinbase app, which resulted in the crypto exchange withdrawing its earlier decisions.
Coinbase CEO Neil Armstrong Confirmed That the company ceased operations in India due to informal pressure from RBI. He said;
“I guess just to zoom out for a minute, one of our principles and my theory is that action produces information. So it’s not always obvious as we go to these countries around the world , everyone is in a different kind of education situation or lack thereof about crypto. And there is a lot of work to be done to meet with policy makers around the world and give them an idea of what the AML capabilities are and what the positive benefits are. I have to teach. People in these countries usually really want crypto. And so to me, it says that in the free world and most places in a democracy, crypto is eventually going to be regulated and legal, but they should be comfortable with it. It will take time to happen.
Despite the challenges, Armstrong said that Coinbase will still launch in India. He added that the company is currently looking at the best way forward but is committed to start its operations in the country. He concluded that;
“We are going to launch because it forces the discussion to happen. Now the press is talking about it in India. Now there are meetings that are going to talk about where we are going to take the next step. How to get there. So that’s generally our approach with international expansion.”