On April 7, Nasdaq-listed Coinbase launched its crypto exchange services in India. But three days after its launch, the company changed its operations.
One month from the suspension of his business, CEO Brian Armstrong made his final statement on the situation during an asset call on May 10.
According to the CEO, Coinbase stopped trading in the country as it was receiving “unsolicited pressure” from the Reserve Bank of India (RBI) to block crypto trading within its borders.
The event took place in April and was followed by a report by the National Payments Corporation of India (NPCI) managed by UPI.
The Coinbase application allows Indian users to use UPI to purchase crypto tokens. That was a huge leap in the world’s second-largest internet market. UPI is a well-known Indian payment infrastructure developed through the joint efforts of retail banks. A statement by NPCI declined to acknowledge UPI support on the Coinbase application.
Statement by NPCI as on 7th April 2022. With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI. Please see the attached document pic.twitter.com/lGTcaSLKeC
– NPCI (@NPCI_NPCI) April 7, 2022
A report in the Tech crunch said Armstrong noted that the application no longer used UPI “due to some information entry from the Reserve Bank of India”.
Although cryptocurrency is not banned in India, Armstrong said that “elements of the government there, including the Reserve Bank of India, do not seem to be positive about it.”
He added that the authorities were particularly concerned about the fraudulent printing press after the incidents to try to stop some of these payments, which could be done by UPI.
Coinbase has plans to restart its app in the country. Armstrong said their choice was to work with authorities in India and focus on rebirth.
Coinbase executives believe the RBI’s actions could be “contrary to the highest court order”. This refers to a ban already imposed by the RBI on crypto trading. But the Supreme Court has changed that.
Speaking about crypto trading in countries like India, Armstrong said, “People in these countries generally want crypto. And, therefore, to me, that says that in many places in the free world and democracies, crypto will be damaged in the process. and law, but it will take time for them to be comfortable with this. ”