Just three days after its debut in the Indian market, the US-based cryptocurrency exchange Coinbase The United Payments Interface (UPI), the region’s most popular payments service, was suddenly discontinued. CEO of Coinbase Brian Armstrong It was later revealed that the service disruption was due to “informal pressure” from the Central Bank of India.
On Coinbase’s 2022 Quarterly Earnings Call, Armstrong spoke Regarding the company’s global expansion plans, while acknowledging Coinbase’s role in initiating conversations with regulators regarding crypto adoption. When asked about the impact of the recent outage, Provide payment services in IndiaArmstrong said:
“So, a few days after the launch, we ended up disabling UPI because of some informal pressure from the Reserve Bank of India (RBI), which is equivalent to the finance ministry there.”
While highlighting the Supreme Court ruling to ban RBI from March 2020 Banning banks from engaging in crypto businessArmstrong warned certain government entities – including the Reserve Bank of India – “they don’t seem optimistic about it.”
The CEO revealed Coinbase’s aggressive international expansion strategy, including launching services in new jurisdictions and working with regulators based on their reaction to Coinbase’s presence in the region. Emphasizing India’s attempt to impose a shadow ban on crypto businesses, Armstrong added:
“Essentially, they’re putting soft pressure behind the scenes to try to disable some of those payments that might be going through UPI. I think we’re concerned that they may actually be violating the Supreme Court decision.”
Despite apparent regulatory hurdles, Coinbase is preparing for a reboot in the region by introducing other payment methods as it tries to meet high demand from crypto investors. Armstrong concluded:
“In most parts of the free world and democracies, cryptocurrencies will eventually be regulated and legalized. The way we move the conversation forward is through action.”
On April 1, India introduced its first set of cryptocurrency laws, requiring cryptocurrency investors to pay fees 30% tax on unrealized crypto gains. However, the move negatively impacted the crypto ecosystem as trading volumes plummeted and internal business Move to a friendlier jurisdiction.
Focusing on the same untapped market, cryptocurrency exchange Binance has launched three key educational initiatives to accelerate the education of Indian investors and students on the cryptocurrency and blockchain ecosystem.
In making the announcement, Binance also highlighted that the lack of education of Indian regulators and policymakers is currently hindering the widespread adoption of cryptocurrencies.