Coinbase Clarifies Suspension of Services for Indian Customers
Digital asset firm Coinbase (NASDAQ:COIN) has provided a clarification regarding its recent announcement of suspending business operations for clients residing in India. The exchange operator had previously sent an email message to Coinbase India customers, informing them that crypto services would no longer be supported after September 25, 2023. However, Coinbase has now stated that this update is not meant for all India-based customers, but specifically for clients who might be violating the firm’s rules and guidelines.
Coinbase management has confirmed that retail services connected to various accounts will be discontinued. In addition, access will be disabled for retail accounts that no longer meet the updated standards set by the company. The email message in question was distributed only to account holders who were found to be not following these updated standards. Coinbase emphasized that during a routine review of their systems, some accounts were identified as not meeting the requirements, resulting in their disablement. Customers will have the opportunity to update their information at a later date.
This announcement aligns with the global trend of increasing anti-money laundering (AML) and know-your-customer (KYC) requirements. As the cryptocurrency space continues to develop and gain adoption, regulators worldwide are gaining a better understanding of crypto transactions. Coinbase recently reported that regulators in major jurisdictions now have an improved grasp of how virtual currencies are traded and used for investments, as well as for financial services like lending and borrowing through decentralized finance platforms (DeFi).
Coinbase reassured its customers that the suspension of retail services will not affect their access to and use of Coinbase Cloud services, which will remain accessible through their accounts.
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