In a statement to crypto.news, Coinbase has denied leaving the Indian market in September.
Crypto.news has contacted Coinbase to understand the company’s current rumors about leaving the Indian market that were initially reported by the local newspaper, Economic Times.
Coinbase spokesperson explained that the company is not ceasing operations in India. Instead, on Sept.9, Coinbase sent an email to some of Indian users entering the platform from other jurisdictions worldwide.
The spokesperson further stated that in a recent system review, they found some Indian accounts that didn’t align with their updated standards. As a result, those accounts will be disabled, but customers will get a chance to update their details in the future.
The platform reassured that the funds of affected users are safe and they can still make withdrawals or send to other crypto services until Sept. 25. They emphasized their commitment to maintaining high standards for the Indian crypto community’s experience.
Coinbase legal issues
Coinbase, one of the largest cryptocurrency exchanges in the United States, has faced several legal issues recently. The company has come under scrutiny from regulatory authorities, particularly the United States Securities and Exchange Commission (SEC), which has accused Coinbase of various failures that have deprived investors of essential protections.
The SEC alleges that Coinbase has sidestepped critical oversight, allowing potential conflicts of interest to go unchecked. This has raised concerns about fraud, market manipulation, and inadequate disclosure of information. Gary Gensler, the chair of the SEC, has emphasized the importance of rulebooks and safeguards to prevent such activities and protect investors.
Coinbase’s chief legal officer, Paul Grewal, has called for legislative clarity and fair, transparent, and universally applicable rules in response to these allegations. Grewal argues that with clear rules and laws that reflect the realities of the cryptocurrency industry, the full potential of crypto can be realized in terms of making the financial system faster, fairer, and more affordable.
Coinbase has presented various defenses in its legal response to the SEC’s complaint. The company’s legal counsel has claimed due process violation and abuse of discretion by the SEC. They have also argued that the SEC’s case falls outside its authority, citing a statement made by the SEC chair two years ago.
In addition to the SEC’s legal action, Coinbase also faces other legal challenges. A customer has filed a $5 million lawsuit against the exchange, alleging securities violations and claiming that Coinbase’s services went down during economic volatility, preventing the customer from managing their funds.
Furthermore, a group of Australian financial researchers has accused Coinbase of being a hub for insider trading, estimating that a significant percentage of new crypto listings on the platform involve some form of insider trading.