As the government is in full swing to regulate cryptocurrencies and virtual digital assets, crypto exchange platform Coinswitch Kuber has temporarily suspended all modes of payment for buying digital coins, including bank transfer, on its platform. Users in India are unable to deposit Indian Rupee, or INR, on its app as of Tuesday morning. It has been disabled through all modes of transfer including bank transfer through UPI and NEFT, RTGS, IMPS etc.
The shocking move by CoinSwitch Kuber has made the platform effectively non-functional, leaving users with no option of loading their crypto wallet to buy cryptocurrencies. This has resulted in a significant impact on the millions of users of the CoinSwitch platform, which in turn will affect the trading volume of the platform. The company had enabled payments via UPI a day earlier, even after the National Payments Corporation of India (NCPI) said that it does not recognize crypto exchanges using UPI. Users were able to transact on CoinSwitch Kuber using various UPI apps including PhonePe, Paytm, Google Pay and NPCI’s BHIM app.
CoinSwitch is yet to respond to questions or issue an official statement. Several users have sought the company’s response on Twitter, asking what is the matter, but there is no clarity yet.
Cryptocurrency exchanges in India have been affected since April 1, the day the government said it would impose a levy 30 percent taxation On profit from cryptocurrency and other virtual digital assets. It was part of the government’s plan to regulate unregulated currencies in India to prevent fraud, when the Reserve Bank of India flagged the imminent impact on the country’s macroeconomy.
As per reports, India has witnessed a sharp drop in trading volumes on major crypto exchange platforms amid uncertain crypto regulations. Payment method options on these exchanges such as ZebPay, WazirX and Giottus have also been in decline as it is unclear how the newly proposed finance bill will govern cryptocurrencies in India. According to Moneycontrol, MobiKwik, which was the only wallet across multiple platforms, has also withdrawn its services from the beginning of this month.
CoinSwitch’s move comes two days after US crypto trading platform Coinbase stopped accepting payments made through the Unified Payment Interface or UPI when buying cryptocurrencies in India. “Purchases with this payment method are temporarily unavailable,” read a disclaimer on the Coinbase mobile app on Sunday.
However, this did not go down well with NPCI which, soon after the launch, issued a clarification stating that “we are not aware of any crypto exchanges using UPI”.
Soon after the clarification issued by NPCI, Coinbase made its own statement, “We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We will work with NPCI and other relevant authorities to ensure that the We are committed to ensure that we are in line with local expectations and industry norms.”
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