Indian crypto exchanges disable payment optionswritten by Bella Palmer
Cryptocurrency exchanges stopped supporting UPI payments after the NPCI issued a statement that it is not aware of crypto exchanges using the UPI system
A number of cryptocurrency exchanges in India are disabling rupee deposits, particularly payments using the Unified Payments Interface (UPI) system. This followed a statement issued by the National Payments Corporation of India (NPCI) regarding the usage of the UPI system by crypto exchanges.
Options to deposit Indian rupees at cryptocurrency exchanges are dwindling. A growing number of cryptocurrency exchanges have disabled INR deposits using the Unified Payments Interface (UPI) system, which is the most widely used retail payment method.
UPI is a widely used real-time payment system in India that is regulated by the central bank. The total value of UPI transactions exceeded $1 trillion in the last fiscal year.
Crypto exchange Wazirx is not offering UPI support. The exchange tweeted Wednesday: Currently, UPI is not available.
Coindcx is also not supporting payments by UPI, saying on Twitter Monday: UPI is temporarily unavailable.
Coinswitch Kuber went even further and reportedly suspended all INR deposit services Wednesday, including UPI and bank transfers via NEFT, RTGS, and IMPS. Coinswitch is a major cryptocurrency trading platform in India with over 15 million users.
The Nasdaq-listed crypto exchange Coinbase, which recently launched in India, has disabled crypto purchases ‘due to an ongoing issue we’re experiencing with the UPI system.’ The exchange further clarified: Note that we don’t support another payment method to buy crypto at this time.
Cryptocurrency exchanges stopped supporting UPI payments after the National Payments Corporation of India (NPCI) issued a statement that it is not aware of crypto exchanges using the UPI system. The NPCI statement followed Coinbase launching in India and advertising that users could easily deposit funds using UPI to buy cryptocurrencies.
In February, India decided to tax income from cryptocurrencies and other digital assets at 30 per cent, signalling that authorities accepted digital currencies, but uncertainty over regulation has weighed on the industry.
Regulatory clarity is the need of the hour, said Abhishek Malhotra, a founding partner of TMT Law Practice. There are currently a lot of conflicting signals on the regulatory regime, leading to lack of certainty.
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