Coinbase suspends crypto payment services in India just three days after launch
America's giant exchange has suspended some payment services on its newly launched Indian exchange due to pressure from the local payment regulators.
Coinbase has stopped payment service through the United Payments Interface (UPI) on its platform for Indian users just three days after its launch in the South Asian subcontinent.
The UPI is the payment portal governed by the National Payment Corporation of India (NPCI), to use buy orders on payment method information on its website for Indian users, which Urges users to try immediate Payment Service (IMP) to place sell orders.
The NPCI is a special division of the Reserve Bank of India (RBI), under the Ministry of Finance.
Financial news outlet Business Standard reported on April 11 that Coinbase has declared that it would work to remedy the situation in India with the appropriate regulators and that it was "committed to working with NPCI and other relevant authorities to ensure that we are aligned with local expectation and industry norms."
The NPCI said on April 7, that it did not recognize the legal standing of any crypto exchanges using the RBI's United Payments Interface (UPI) even after Coinbase declared the release of its service. The impetus for the suspension may have arisen from this 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.”
Indian Coinbase users do not appear to be vexed by the sudden Suspension of service Co-founder of the Crypto India YouTube channel, Aditya Singh, tweeted to his 210,000 followers on April 11 "This is not new, Indian exchanges have also been facing payment service problems since 2018."
Coinbase disabled UPI service in India few days after NPCI statement.— Aditya Singh (@CryptooAdy) April 10, 2022
This is not new, Indian exchanges have also been facing payment service problem since 2018.
Weird fact - Actual gambling apps get proper payment service support while crypto exchanges are being alienated.
Indian Crypto traders are accustomed to instability in trading service accessibility. The Indian Government has struggled to adopt a suitable regulatory framework for crypto as market participants have endured several moments since last year where it looked like crypto might be banned in the country.
T.Rabi Sankar, deputy governor of the Reserve Bank of India, would support a full ban. a ban has yet to occur as the country enacted a 30% tax on crypto trading on March 31 which is similar to its tax on gambling.
Coinbase Ventures, the investment arm of Coinbase, declared last month that it aims to invest $1 million in the Indian crypto and Web3 industries. The fate of those plans does not yet appear to be affected by the exchange's service suspension.