Coinbase co-founder and CEO Brian Armstrong accused the Reserve Bank of India (RBI) of “informal pressure” and denial of Unified Payments Interface (UPI) services, which resulted in Coinbase suspending its trading services three days after the Start set on April 7 .
Coinbase India launch experience
Speaking for the first time on the subject, Armstrong explained what led to the company’s discontinuation of services in India and how it plans to make a comeback. During the earnings call for the first quarter of 2022, he said:
“A few days after launch, we finally deactivated UPI due to informal pressure from the Reserve Bank of India, which is something of a Treasury equivalent there,” he explained in response to a question from Anil Gupta, VP, Investor Relations , Coinbase.
Coinbase, which has had a technical center in India with about 300 employees for over a year and plans to hire another 1,000 this year alone, launched its trading services on April 7, 2022 in Bangalore in the presence of CEO Armstrong.
But within three days, the Nasdaq-listed crypto trading platform was forced to halt its services to Indian investors after the UPI for instant bulk payment services was denied by the RBI-controlled NPCI.
The Coinbase co-founder and CEO reached India a week before the launch of his trading platform. He also informed readers via a company blog on Medium that Coinbase Ventures would be meeting with startup founders to explore investment opportunities in crypto and Web3 domains.
“And India is a unique market in the sense that the Supreme Court has ruled that they cannot ban crypto, but there are elements in government there, including the Reserve Bank of India, that don’t seem as positive about it. And so they have — it’s been called a “shadow ban” in the press, basically they’re putting gentle pressure behind the scenes to try and disable some of these payments that might be going through UPI,” Armstrong added.
Reintroduction in India is a priority
After Armstrong detailed what happened in India and how the RBI’s informal pressure was a violation of the Supreme Court ruling, Armstrong said his priorities were an imminent restart.
“But I think we really prefer to just work with them and focus on the restart. I think there are a number of paths we need to restart there with other payment methods. And this is the default path for the future. So I hope that in a relatively short time we will be living in India again, along with a number of other countries where we are similarly expanding internationally,” he summarized his India experience.
Experience in compliance and regulation
The second largest crypto exchange by volume operates in over 100 markets and claims to have a thorough understanding of the complications surrounding compliance and regulation.
Building on its experience, the company launched Coinbase Intelligence in April 2022, a suite of crypto compliance tools for businesses and law enforcement agencies. These transaction screening tools provide real-time monitoring and alerts for better risk management.
Source: Crypto News Deutsch