As the government is working in full swing to regulate cryptocurrency and virtual digital assets, crypto exchange CoinSwitch Kuber has temporarily suspended all payment methods for purchasing digital currencies, including bank transfers, on its platform. Users in India will not be able to deposit Indian Rupees or INR into its app from Tuesday morning. This is also disabled by all transfer modes, including UPI, bank transfer through NEFT, RTGS, IMPS, etc.
CoinSwitch Kuber’s shocking move left the platform effectively ineffective, leaving users with no option to load their crypto wallets to purchase cryptocurrency. This has had a huge impact on the millions of users of the CoinSwitch platform, which in turn will affect the trading volumes of the platform. The company, just a day ago, enabled UPI payments even after the National Payments Corporation of India (NCPI) did not recognize cryptocurrency exchanges with UPI. Users were able to transact on CoinSwitch Kuber using various UPI applications, including PhonePe, Paytm, Google Pay and the NPCI BHIM application.
CoinSwitch has not responded to inquiries or released an official statement yet. Several users have sought the company’s response on Twitter, asking about the issue, but there is no clarity yet.
Cryptocurrency exchanges in India have been affected since April 1, the day the government said it would impose fees 30 percent tax On winnings from cryptocurrencies and other virtual digital assets. This was part of the government’s plan to control unregulated currencies in India to prevent fraud, after the Reserve Bank of India indicated the impending impact on the country’s overall economy.
According to reports, trading volumes on major cryptocurrency exchanges have seen a sharp decline amid uncertain cryptocurrency regulations in India. Payment method options on these exchanges, such as ZebPay, WazirX and Giottus, have also been on the decline due to the lack of clarity on how to regulate the proposed new funding law for cryptocurrencies in India. According to Moneycontrol, Mobikwik, which was the only wallet across multiple platforms, also pulled its services starting from the beginning of this month.
CoinSwitch’s move comes two days after US crypto exchange Coinbase stopped accepting payments made through the Unified Payment Interface, or UPI, in India while buying cryptocurrencies. “Purchases with this payment method are temporarily unavailable,” read the disclaimer on the Coinbase mobile app on Sunday.
However, this did not sit well with the NPCI, which shortly after launch issued a clarification saying that “we are not aware of any crypto exchanges using a UPI”.
Shortly after the clarification from NPCI, Coinbase released its own statement saying, “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 that we comply with local expectations and industry standards.” .