Coinbase Halts INR Withdrawals, Tightening Crypto Access in India
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Coinbase has suspended Indian Rupee (INR) withdrawals for its users in India, citing a service outage at its banking partner.
MissedBlock Desk · 2 min read
Coinbase Halts INR Withdrawals in India Amidst Banking Outage
Coinbase has suspended Indian Rupee (INR) withdrawals for its users in India, citing a service outage at its banking partner. The cryptocurrency exchange has assured customers that their funds remain secure despite the ongoing disruption, which has now lasted for over five days. Coinbase has not yet provided a definitive timeline for the restoration of withdrawal services.
Broader Issues Plague Indian Crypto Exchanges
Coinbase is not the sole platform experiencing difficulties in the Indian market. Unocoin, another prominent Indian cryptocurrency exchange, has halted all deposits and withdrawals since November 9th, with no indication of when services will resume. Meanwhile, ZebPay has alerted its users to delays in INR withdrawals, attributing the slowdown to technical issues at its banking partner.
On November 14th, Coinbase India announced via X (formerly Twitter) that INR withdrawals were temporarily unavailable due to an outage affecting its banking partner. The exchange advised users against initiating new INR withdrawals, warning that any requests made during the outage might fail or remain pending. Coinbase clarified that the banking partner’s payout issues affect all its clients, not exclusively Coinbase.
Users have expressed frustration on X, with some urging Coinbase to switch banking partners, citing their inability to access their funds for more than five days. The timing of these disruptions is particularly significant, as Coinbase had recently expanded its rupee services in India, enabling INR deposits and withdrawals through IMPS after registering with India’s Financial Intelligence Unit.
Regulatory Scrutiny and Market Uncertainty
These service disruptions occur against a backdrop of India’s stringent approach to cryptocurrency and banking. In June, Reserve Bank of India (RBI) deputy governors advised banks and financial institutions to distance themselves from crypto-related businesses. The RBI has also cautioned that virtual digital assets could pose risks to an emerging economy like India.
Despite these warnings, India permits cryptocurrency trading under specific tax regulations, including a 30% tax on gains and a 1% Tax Deducted at Source (TDS). However, the directive for banks to maintain distance from crypto-related businesses continues to create a complex operating environment for exchanges in the country.