blockworks.co
Coinbase has notified a segment of its Indian user base about a possible service suspension, leading to worries that the exchange may shut down operations in India.
However, the company emphasized that this warning was specifically sent to Indian users residing abroad who no longer align with the exchange’s criteria.
According to Coinbase’s official site, its services are not currently offered in India.
“It is possible that during the course of a recent routine review of our systems, some accounts may have been identified that no longer meet our updated standards,” a Coinbase spokesperson told Blockworks on Monday, declining to comment on what the new standards are.
“We will therefore be disabling these accounts, and allow customers to update their information at a later date.”
After The Economic Times, an Indian media outlet reported on Sept. 11 that Coinbase would end its services for registered users in India — a claim that was mostly inaccurate — the company clarified the situation.
A spokesperson from Coinbase added that impacted users either withdraw their balances or move them to different crypto platforms until Sept. 25.
Coinbase requires users to meet certain compliance standards, mainly based on know-your-customer (KYC) and anti-money laundering (AML) laws, which include ID verification and sometimes proof of residence. The exchange may also have undisclosed internal criteria.
A source familiar with the matter told Blockworks that Coinbase is not halting services in India. They clarified that the exchange’s email was specifically directed at Indian users accessing the platform from outside the country.
Earlier this year, India’s finance ministry declared that AML measures are now applicable to cryptocurrency companies, mandating their compliance with the broader financial sector.
Crypto companies in India are now obligated to provide KYC information upon request by authorities.
Additionally, crypto businesses are legally obligated to report any suspicious transactions to India’s Financial Intelligence Unit, ensuring greater accountability to the government.