Crypto exchange Coinbase ceases UPI payments following India launch

Just after a few days of announcing its launch in India with many ordeals, the global crypto exchange platform, Coinbase has reportedly halted payments through UPI (united payments interface) on its app.

Currently, Indian users can only use bank transfers via IMPS for cryptocurrency transactions on the Coinbase app.

In a statement, the NPCI (National Payments Council of India) said that it was not aware of any crypto exchanges using the United Payments Interface (UPI) after Coinbase disclosed it to be the mode of payment on its platform.

Responding to the NPCI statement, a Coinbase spokesperson said that as the firm enters the Indian market, it is enthusiastically experimenting with several modes of payments and partners for enabling its customers to make their crypto purchases seamless. One such method is UPI, which is easy to use along with a fast payment system.

Coinbase is very well aware of the statement issued by the NPCI regarding the use of UPI by cryptocurrency exchanges and is committed to working and functioning in line with NPCI and the other appropriate authorities for ensuring that it is aligned with local expectations and industrial norms.

Reportedly, in 2021, Coinbase launched an Indian tech hub and employed around 300 full-time professionals, with plans of employing around 1,000 people in the country this year.

The firm's venture capital division, Coinbase Ventures, has invested $150 million in home-grown Indian technology companies already in the Web3 and crypto space and is looking forward to new opportunities for backing the Indian founders scale, said the company.

Moreover, Coinbase had forayed into India at a time when the domestic cryptocurrency exchanges were also observing a sharp fall in transactions amid the execution of a new tax regime.

Source Credit - https://www.business-standard.com/article/companies/coinbase-halts-upi-payments-for-crypto-within-three-days-of-india-launch-122041100027_1.html