- Coinbase (NASDAQ:COIN) halts crypto trading in India.
- Coinbase CEO Brian Armstrong said that there is “informal pressure” from the RBI.
- RBI’s action “may actually be in violation” of the Supreme Court ruling,” he added.
Brian Armstrong, CEO of Coinbase crypto exchange, informed that his company ceased trading crypto services in India. Armstrong says that this abrupt halt is due to “informal pressure” from the Reserve Bank of India (RBI), India’s central bank that regulates the country’s banking system.
Armstrong remarked about the issue while addressing Coinbase’s Indian episode. A few days ago, he questioned the RBI and the National Payments Corporation of India (NPCI) for their informal restrictions on cryptocurrency trading in the country.
Last month, Armstrong tweeted, “Tough questions and good questions, for NPCI and RBI in India. Is their “shadow ban” a violation of the supreme court ruling?”
Tough questions, and good questions, for NPCI and RBI in India. Is their “shadow ban” a violation of the supreme court ruling?https://t.co/59tbDH1zLS— Brian Armstrong – barmstrong.eth (@brian_armstrong) April 25, 2022
Recently, Coinbase started crypto trading in India with much fuss on April 7, 2022. It clung to the motto, “Come, let’s get started!” The Nasdaq-listed company and the second-largest internet platform allowed users to purchase crypto tokens using UPI, an instant real-time payment system in India.
According to a Coinbase blog, the company has invested $150 million in native Indian technology firms in the crypto and web3 space.
Chalo shuru karein!That’s how you say “Come, let’s get started!” in Hindi and that’s our guiding light as we work to serve and grow the crypto and web3 community in India.Learn more https://t.co/d0McVp5AAy— Coinbase (@coinbase) April 7, 2022
Notably, crypto trading in India has been prone to restrictions and bans, where the RBI and finance ministry pointed to the financial threats to the country as the reason. Despite all this, in the Union Budget 2022, the finance minister declared introducing digital currency, including crypto, but with a 30% tax imposed.
Additionally, the Goods and Services Tax (GST) Council is expected to impose a 28% tax on cryptocurrencies. Former RBI Governor Raghuram Rajan earlier remarked that cryptos are not a safe investment for people with limited resources.