The BACC has asked the NPCI to restore the UPI service to Indian crypto exchanges
The local crypto-focused organization has sought time for a meeting to discuss the issue and understand the regulator's concerns.
The Blockchain and Crypto Assets Council (BACC) has asked the National Payments Corporation of India (NPCI)
It requested a meeting with the inter-bank retail payments and settlement body to discuss and understand its concerns around the crypto trade. Said.
“We asked for some time with the NPCI to understand their reservations and put forth our viewpoint to remove any misunderstanding,” a BACC source said.
BACC has reportedly said to NPCI that several of the crypto exchange strictly follow user KYC and other NPCI protocols and asked it to restore the UPI service to the business.
BACC is a non-profit advocacy group under the internet and Mobile Association of India. it has all major local crypto exchanges including CoinSwitchKuber, CoinDCX, and WazirX as its members in October 2021. Coin switch founder Ashish Singhal and CoinDCX co-founder Sumit Gupta were appointed as co-chairs of BACC.
UPI and its real-time inter-bank P2P and P2M payment system developed by NPCL launched in 2016 UPI had 150 million active users till May 2021, and it processed 68 billion transactions worth $460 billion till November 2021. becoming a successful mobile phone-based instant payment system.
UPI service is believed to be aimed at limiting Indian investors' exposure to digital assets until a cryptocurrency regulation bill is adopted by parliament NPCI is a wing of India's central bank.
Also, India has one of the tax environments for the crypto sector While gains from crypto transactions are taxed at 30% there is no provision to offset losses against the profit. Tax authorities are planning to raise the GST from the existing 18% to the highest slab of 28%
NPCI statement said it's not aware that any crypto exchanges are using the UPI service. The clarification forced all major crypto exchanges to disable the deposit in Indian rupees.
It also made payments companies Like MobiKwik that use UPI to process the payment stop offering their service to the crypto business.