Crypto exchange Coinbase is backing out of a move to bring its services to India, citing heavy pressure from the country’s central bank.
No later than Result callCoinbase CEO Brian Armstrong said the exchange had to halt its services in India despite a previous Supreme Court ruling overturning a ban on crypto trading in the country.
“We launched Coinbase in India on April 7th. And that includes fiat entries into the crypto economy. There is a lot of interest in crypto among the people there in India. So we had an integration with what is called UPI (Unified Payments Interface)…
A few days after launch, we finally disabled UPI due to informal pressure from the Reserve Bank of India, which is something of a Treasury equivalent there. And India is a unique market in the sense that the Supreme Court ruled they cannot ban crypto.
But there are elements in government there, including the Reserve Bank of India, that are not so positive about it.”
Armstrong says Indian authorities may engage in “shadow bans” or apply gentle pressure behind the scenes to prevent certain payments from using the UPI system. Despite the setback, the exchange is hoping to redesign operations as soon as possible
“But I think we really prefer to just work with them and focus on the restart. I think there are a number of ways we need to restart there with other payment methods. And this is the default path for the future.
So my hope is that in a relatively short period of time we will be living in India again, along with a number of other countries where we are similarly expanding internationally.”
Coinbase last month embarked on a hiring spree to quadruple its workforce in India, the second most populous country in the world.
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Source: Crypto News Deutsch