Coinbase has suspended UPI payment option for its users, days after the company announced its plans to launch crypto trading in India, with UPI support. Mobikwik wallet, which had partnered with major crypto exchanges, has also stopped supporting crypto trading.
This development comes after the National Payments Corporations of India (NPCI) on April 7 said that it is not aware of any cryptocurrency exchange using the Unified Payments Interface (UPI) for transactions. “With reference to some recent 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,” NPCI said in a statement.
Currently, only a few exchanges are currently allowing crypto trading using IMPS bank transfers. Notably, at least six cryptocurrency exchanges in India were offering Mobikwik e-wallet option. In reply to NPCI’s public statement, on April 9, Coinbase stated: “We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms.”
Coinbase announced last week that it is launching a full scale crypto trading in India—and that its users will be able to use UPI for purchasing crypto. Coinbase CEO Brian Armstrong spoke about the new opportunities in Indian crypto startups and highlighted exchange’s plans of hiring and further expanding its business in the country.
The issue comes at a time when the Indian government has imposed a 30 per cent tax from any profits generated via crypto trading, and a one per cent TDS on every intra day crypto transaction, starting April 1. Failing to comply with the new tax rules could land violators in jail for up to seven years.
Indianexpress.com reached out to Mobikwik for a comment, but the company declined to comment.