Coinbase’s Services Shut Down by the Bank of India, Here’s Why
One of the largest trading platforms in the world is now having trouble with one of the largest crypto markets in the world
According to a recent Bloomberg articleIndia’s central bank pressured one of the largest cryptocurrency exchange platforms in the world and halted the process of buying crypto assets through the country’s online retail payment system.
According to the company’s CEO Brian Armstrong, the company had to shut down UPI (Universal Payments Interface) a few days after its launch after being informally pressured by the Reserve Bank of India.
The UPI is an Indian-developed system for bridging fiat and digital assets. Its development has been supported by the country’s central bank as it uses real-time transfers between bank accounts. Bloomberg also added that the RBA was not commenting on the matter.
In April, the US-based crypto firm expanded its operations in India by implementing a state-backed payment interface. The central bank-backed system allowed users to pay in rupees and buy cryptocurrency legally. The system acted as a bridge between digital assets and fiat.
According to UPI representatives, they are not aware of any cryptocurrency exchanges using their network for payments. For their part, Coinbase added that they are not exiting the Indian market and hope to go live again in a relatively short time. The company plans to triple the number of employees by the end of the year.
India’s relationship with the cryptocurrency industry can be described as “hot and cold” as the country has tackled the industry many times by removing crypto start-ups from the banking network or adding various restrictions to retail crypto traders. Earlier, Governor Shaktikanta Das argued that digital assets pose a threat to the country’s financial system.