In response to pressure from local payment authorities, the world's biggest stock exchange temporarily stopped certain payment services on its newly opened Indian market. In only three days after launching operations in the South Asian subcontinent, Coinbase, the world's biggest cryptocurrency exchange located in the United States, has suspended payment services via the United Payments Interface (UPI) on its platform for Indian consumers.
A payment interface managed by the National Payment Corporation of India (NPCI) that supports purchase orders on Coinbase UPI payments India services is the Unified Payments Interface (UPI). When it comes to placing sell orders, the exchange has already revised its payment option information on its website for Indian consumers, encouraging them to utilize the Immediate Payment Service (IMP). The National Payments Corporation of India (NPCI) is a separate subsidiary of the Reserve Bank of India (RBI) under the Ministry of Finance for Coinbase UPI payments.
In an article published on Monday by the financial news outlet Business Standard, Coinbase stated that it would work with the appropriate regulators to correct the situation in India and that it was "committed to working with NPCI and other relevant authorities to ensure that we are aligned, with local expectations and industry norms and hence Coinbase add payment method not working.
The National Payments and Clearing Corporation (NPCI) stated in a statement on Thursday that it did not recognise the legal status of any cryptocurrency exchanges that used the RBI's United Payments Interface (UPI), even though Coinbase UPI payments had announced the launch of its services. It's possible that this statement served as the reason for the suspension:
According to various media reports, the National Payments Corporation of India (NPCI) would like to clarify that it is unaware of any cryptocurrency exchange that accepts payments via UPI.
According to reports, users of Coinbase crypto payments in India do not seem to be bothered by the service's unexpected shutdown. As Aditya Singh, a cryptocurrency enthusiast and co-founder of the Crypto India YouTube channel, pointed out in a Monday tweet to his 210,000 followers, "This is not new; Indian exchanges have also been experiencing payment service issues since 2018."
At this moment, Indian cryptocurrency traders are most likely used to the inconsistency of trading service availability of Coinbase crypto payments. Even though market players had seen various periods since last year when it seemed that cryptocurrency would be prohibited in the nation, the Indian government has failed to develop a viable legal framework for cryptocurrency.
Some Indian authorities, such as T. Rabi Sankar, deputy governor of the Reserve Bank of India, favor a complete ban on the practice. However, no such ban has yet been implemented in the nation, which on March 31 approved a 30 percent tax on cryptocurrency trading, which is identical to the country's gaming tax.
Recently, Coinbase crypto payments suspended, and the investment arm of the cryptocurrency exchange Coinbase announced plans to invest $1 million in the Indian cryptocurrency and Web3 businesses. According to current indications, the destiny of such plans will not be altered by the suspension of the Coinbase payment method not working at the exchange.