Coinbase’s CEO pointed a finger at central bank authorities, alleging “unofficial pressure” that halted the transaction and caused revenue loss.
However, I was recently asked about the situation by Coinbase co-founder and CEO Brian Armstrong. In response to these questions, Armstrong argued that “unofficial pressure” from the RBI allowed the team to pause UPI work in the country.
“…the elements of the government, including the central bank of India, do not seem to be very positive about this. So they — the press called it ‘no shadows’. Basically they are putting soft pressure behind the scenes to disable some of these payments that can get through the UPI… What we prefer is really work with them and focus on relaunch. I believe there are multiple paths that require you to start over with a different payment method. And that is the basic path forward.”
Armstrong recently pointed out that trading cryptocurrencies in India is not illegal since it announced a 30% crypto tax in Budget 2022. He also felt that the move adopted by the RBI to quell India’s growing crypto industry could violate a Supreme Court ruling. Some Indian banks have already ‘no shadows‘ He claimed that it was illegal because it was charged to UPI for trading cryptocurrency.
Loss of revenue in the second quarter of 2022
The disruption of operations in India has had a significant impact on the earnings of NASDAQ listed companies. The exchange made $1.17 billion in revenue in the first quarter of 2022 alone, but has plummeted 35% since then, with a quarterly net loss of $430 million. Trading volume also decreased by 44% from the previous quarter.
Armstrong added it
“People in this country in general really want cryptocurrencies. So for me, cryptocurrencies will eventually become regulated and legalized in most parts of the free world and democracies, but it will take some time to get used to.”
Board Denies UPI Support
The US-based cryptocurrency exchange recently (April 2022) launched a cryptocurrency trading service that bears its name in India. The country’s vast internet marketplace and UPI, a payment infrastructure led by retail banks, made Coinbase’s transactions sweeter. The app launched in India allowed Indians to use UPI to purchase crypto tokens. Shortly after launch, the National Payments Corporation of India (NPCI), the governing body overseeing UPI operations, refused to approve UPI support in the Coinbase app. So, three days after launch, work was paused without further information.
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