04/11/2022
Coinbase, the largest cryptocurrency exchange based in the United States, has stopped payment services via United Payments Interface (UPI) for Indian users on its platform. This comes just three days after its launch in the South Asian subcontinent.
The governing body of UPI, the National Payment Corporation of India (NPCI), had said in a statement released on April 7 that it did not recognize the legal standing of any cryptocurrency exchanges using the Reserve Bank of India’s (RBI) United Payments Interface.
The hasty clamp down on Coinbase by the NPCI could relate to the following comment: “With reference to some media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI.”
The financial news outlet, Business Standard, reported on April 11 that Coinbase stated it would work towards remedying the situation with appropriate regulators in India, and said that it was “committed to working with NPCI and other relevant authorities to ensure that we are aligned with local expectations and industry norms.”
Coinbase users in India do not seem fazed by the sudden suspension of service. The co-founder of the YouTube channel, Crypto India, Aditya Singh, tweeted on April 11 that this suspension of an exchange’s payment service in India is nothing new, and mentioned in the tweet that “Indian exchanges have also been facing payment service problems since 2018.”
Due to the Indian government’s struggles to adopt a suitable cryptocurrency regulatory framework, cryptocurrency traders are likely accustomed to instability in trading service accessibility.
