Coinbase’s Hilarious Attempt to Re-Enter India’s Crypto Circus 🎪

by

Ah, Coinbase, the brave knight of the crypto realm, is polishing its armor for another joust in the Indian market after a rather dramatic exit last year. The American crypto exchange is now sweet-talking Indian authorities, including the Financial Intelligence Unit (FIU), in hopes of securing the golden ticket for its grand re-entry, as reported by TechCrunch on a fine Thursday.

India’s relationship with cryptocurrencies is like a soap opera—full of twists and turns! The government, still fumbling with its regulatory framework for virtual assets, has left exchanges in a murky gray area. While trading crypto isn’t illegal (yet!), financial institutions are playing hard to get, fearing a stern look from the Reserve Bank of India (RBI). Talk about a love-hate relationship!

Coinbase’s comeback is following in the footsteps of Binance, which waltzed back into India last August after a successful registration with the FIU. That move was like a green light for other global exchanges, showing them that the Indian market isn’t just a mirage in the desert of regulations.

RBI’s “Informal Pressure”: The Uninvited Guest

Coinbase’s last tango in India ended abruptly in 2022, like a bad date. They launched their services in April, all set to dance with the country’s beloved Unified Payments Interface (UPI). But lo and behold, just three days in, the National Payments Corporation of India (NPCI) decided to ghost them, refusing to acknowledge their existence. Ouch!

This wasn’t just a minor hiccup; it was more like a slap in the face! Coinbase CEO Brian Armstrong later spilled the beans about the “informal pressure” from the RBI that forced them to shut down trading. The central bank’s cautious approach to crypto has been a thorn in the side for foreign exchanges, with local banks often playing hard to get to avoid regulatory drama.

Coinbase CEO says Coinbase halted trading service in India because of “informal pressure” from RBI. The Reserve Bank of India’s action “may be actually in violation of the Supreme Court ruling, which would be interesting to find out if it were to go there,” he said.

— Crypto India (@CryptooIndia) May 11, 2022

Now, Coinbase is sitting on the edge of its seat, waiting for the FIU’s approval. The FIU had previously ruled that several exchanges, including Binance and Kraken, were operating “illegally” in India. But fear not! Many of those firms have since played nice and complied with the FIU’s demands, paving the way for their return. It’s like a game of musical chairs, but with more money involved!

Coinbase’s Global Adventure

Coinbase’s ambition to conquer international markets has been as clear as day in recent months. At a Goldman Sachs conference, CFO Alesia Haas made it known that the company is eager to dive into emerging markets. India, despite its regulatory hurdles, is still a tempting target due to its massive crypto user base. Who wouldn’t want a piece of that pie?

A company spokesperson confirmed Coinbase’s commitment to playing by India’s rules, stating, “Coinbase is excited by the opportunities in the Indian market and intends to comply with applicable regulatory requirements.” However, they kept mum about the FIU registration process or a timeline for their grand relaunch. Classic suspense!

Meanwhile, India continues to drag its feet on a comprehensive crypto regulation bill, despite discussing it for nearly six years. While the government is quick to enforce strict taxation, it offers no safety net for investors against scams or fraud. The WazirX collapse and several high-profile security breaches have left Indian traders feeling like they’re in a bad horror movie with no exit in sight.

Read More

2025-02-13 14:14