Cryptocurrency exchange apps like Coinbase and CoinSwitch Kuber have disabled UPI payment methods for crypto purchases drawing significant ire of the platform’s users as the battle for crypto legalisation in India continues. CoinSwitch today disabled all forms of payment including bank transfers two days after Coinbase halted UPI, the only crypto purchase option on its platform.
This comes after the National Payments Corporation of India (NPCI) put out a statement saying that it was “not aware” that UPI was being used to purchase cryptocurrency.
Just days ago, Coinbase had added UPI as a payment method in India which was then halted after NPCI's announcement.
Trading on CoinSwitch, that has had 14 million users in 2021, is all set to be significantly impacted after the move. On the app too, UPI payments and bank transfers have been paused leaving users with no way to purchase crypto.
Mobikwik wallet has also withdrawn support for crypto transactions in the country, further making trading difficult. Users are now left with limited options.
Several other crypto platforms, using Mobikwik's wallet, who also pulled out after the announcement.
Twitter was not happy with their trading being halted and an outburst followed.
To an user asking for a fast withdrawal process, CoinSwitch’s support handle had a response:
“For crypto withdrawals, we are still engaging with regulators and policymakers in bringing regulations. Until some clarity is achieved, the crypto withdrawal/deposit functions will remain disabled on the CoinSwitch platform. While we understand it’s an inconvenience, we believe that it’s only a minor bump in our way to regulate crypto in India.”
The government announced a 30 percent tax on gains from cryptocurrencies which was implemented on April 1. Payment methods have seen a gradual reduction on crypto platforms since then.
There has been a drastic decline in crypto trading since the tax was imposed and it is expected to further go down as a 1 percent TDS (tax deduction at source) comes into effect on all crypto transactions starting July 1.
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