Coinbase suspends service due to interference of the Reserve Bank of India
According to Bloomberg, India central bank has pressured Coinbase and halted the process of purchasing crypto assets through the country’s online retail payment system.
Coinbase is now having problems with one of the biggest crypto markets in the world
According to the company’s CEO, Brian Armstrong, within days of the launch, the company had to disable UPI (Universal Payments Interface) after being pressured informally by the Reserve Bank of India.
UPI is a system developed in India to bridge the gap between fiat and digital assets. Its development is supported by the country’s central bank as it uses real-time transfers between bank accounts. Bloomberg also added that the RBA was not available for comment on the matter.
In April, the US-based crypto company expanded its operations in India by implementing a state-backed payment interface. With a central bank-backed system, users can legally pay rupees and buy cryptocurrencies. The system acts as a bridge between digital and fiat assets.
According to a UPI representative, they are not aware of any cryptocurrency exchanges that use their network for payments. For its part, Coinbase added that it is not leaving the Indian market and hopes to be back up and running in a relatively short time. The company plans to triple the number of employees by the end of the year.
India’s relationship with the crypto industry can be described as “hot and cold”, as it has repeatedly cracked down on the industry by removing crypto startups from its banking network. goods or add various restrictions on retail crypto traders. Earlier, Governor Shaktikanta Das suggested that digital assets are a threat to the country’s financial system.
The exchange shares hit an all-time low
After the crash with India plus bad disclosure reports, a market crash, and new US inflation statistics, still, very close to a 40-year high, Coinbase shares are down nearly 23% at the open. market opening – it’s an all-time low.
First, the crypto exchange posted a net loss caused by shareholders of $430 million for the first quarter of 2022, compared with a profit of $771 million last year. According to the report, the number of monthly trading users (MTU) grew to 9.2 million in the first quarter, a 1.5x increase from 2021, but the chaos of the crypto market and performance. The poor performance of most assets led to a drop in trading volume by 7.8% from a year earlier.
At the same time, the crypto world experienced the fall of Terra, with its LUNA token value dropping by more than 90% and its stablecoin, UST, losing its peg to the dollar, currently with a total value is $0.225 per 1 UST. The collapse in market capitalization of the top 10 cryptocurrencies has greatly affected the entire market and added negativity to the downtrend that the cryptocurrency is topping right now.
Finally, according to the official report, US inflation fell to 8.3% in April from 8.5% in March. The markets expected a drop to 8.1%, and their expectations did not match. Along with that, monthly core inflation accelerated from 0.3% (m/m) to 0.6% (m/m). It is getting serious.
The market is not so concerned with inflation itself but with how much it affects the decisions of the Federal Reserve. The Federal Reserve is looking more at core inflation, inflation whose acceleration could be interpreted as causing serious anxiety among investors.
The market reacted negatively to the data. That’s where Coinbase shareholders lost as much as 23%, with the price per share down 78% from last year’s IPO.
- Coinbase Disabled Its Support For The Unified Payments Interface (UPI) In India
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