Coinbase Halts UPI Payment In India Amid Low Crypto Trading Volumes: Report

Three days after the Nasdaq-listed crypto trading firm Coinbase announced that it will allow users to make Unified Payments Interface (UPI) payments to purchase cryptocurrencies, the company has stopped its UPI payments option in India, Moneycontrol reported citing sources. 

Notably, the National Payments Corporation of India (NPCI) said on April 7 that it is not aware of any crypto exchange using UPI payments. 

Following NPCI’s comment, Coinbase said, “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.”

According to the report, the app of the crypto exchange is currently showing the IMPS payments method option in India, as the buying option is also unavailable in the country. The development is being viewed as a setback for the crypto industry, as it is already witnessing a major slump following 30 per cent taxation on crypto assets, as announced by Finance Minister Nirmala Sitharaman in the union budget for the current fiscal. 

Moreover, the online payment app Mobikwik wallet which has previously partnered with major crypto exchanges has stopped crypto trading, as per the report. 

According to the media reports, following the government’s announcement on the taxation of cryptocurrencies, the crypto trading volumes have plunged as much as 55 per cent.