Nasdaq-listed cryptocurrency exchange Coinbase has revealed that it was halted days after its launch due to “informal pressure” from the Reserve Bank of India (RBI), the central bank of India, CEO Brian Armstrong said. operations in India.
Coinbase shares its experience in India
Coinbase Global provided an update on its India operations during the company’s earnings call on Tuesday, specifically why it pulled out of the Indian crypto market just days after its launch.
Anil Gupta, VP of Investor Relations at Coinbase, asked CEO Brian Armstrong: “Some shareholders are curious about recent developments in India. Can you explain the cessation of UPI? [Unified Payments Interface] Transfer there? How will this affect your expansion plans in the market? “
Coinbase launched in India on April 7. Armstrong heads to India for the launch. The company said at the time that users could buy cryptocurrencies on the platform using the UPI system. However, a few days later, the company disabled the UPI option.
“Indians are interested in cryptocurrencies. So we integrated with what is called UPI. It’s a great example of our international strategy,” Armstrong said on the earnings call. He elaborated:
A few days after the release, we ended up disabling UPI due to some informal pressure from the RBI, which is the equivalent of the Ministry of Finance there.
“India is a unique market because the Supreme Court has ruled that they can’t ban cryptocurrencies, but there are some people in the government there, including the RBI, who don’t seem to be so active on it,” the Coinbase boss believes.
Armstrong noted that what the RBI is doing has been described by the media as a “shadow ban”. “Basically, they put soft pressure behind the scenes to try to disable some of these payments that might be made through UPI,” he detailed.
The Coinbase executive further stated: “I think we’re concerned that they may actually have violated the Supreme Court decision, and it would be interesting if it would go there.”
He continued: “But I think our preference is really just to work with them and focus on rebooting. I think we have to reboot a lot of paths through other payment methods. That’s the default path going forward. Armstrong concluded:
I hope we can return to India in a relatively short period of time, along with some other countries, we are looking for a similar international expansion.
What do you think of Coinbase’s experience in India? Let us know in the comments section below.
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