The US exchange stopped some payment services on its newly released Indian exchange due to problems with UPI, a popular payment system in the country.
The famous cryptocurrency exchange Coinbase has had to obstruct payment services via the United Payments Interface (UPI) on its network for customers residing in India.
UPI or Unified Payments Interface is a well-known instant payment method based on real-time activities that activate peer-to-peer and retail operations. UPI is also the payment method managed by the National Payments Corporation of India (NPCI), making purchase orders on Coinbase features in India easier for customers.
On the other hand, the NPCI is a particular branch of the Reserve Bank of India which gives news about the Situation to the Ministry of Finance.
The exchange applied some updates on its payment procedure information located on its website. It urges Indian users to look for other ways to use the Immediate Payment Service (IMP) to place sales orders.
Looking for New Ways
Financial news outlet Business Standard highlighted that Coinbase would work to solve the Situation in India with the proper regulators and focus on working with NPCI and other essential entities to make sure they get synchronized with local expectations and standards compliance.
The NPCI expressed that it is impossible for the entity to acknowledge the stance of any crypto exchange applying RBI’s United Payments Interface (UPI), even after Coinbase revealed the release of its services with UPI.
According to various media outlets’ reports, UPI expressed that they are unaware of activities like acquiring digital assets applying UPI, the National Payments Corporation of India.
On the other hand, Coinbase expressed that it was trying various payment procedures, one of which was UPI. The exchange focused on carrying out its activities with NPCI and other relevant authorities to ensure they got synchronized with expectations. According to the media, Indian Coinbase users do not show anger about the sudden obstruction of the service.
How Vital is UPI
In the launch a few days ago, Surojit Chatterjee, Chief Product Officer of Coinbase, said that using UPI would be the first step for citizens of India who want to buy crypto on their platform. Coinbase CEO Brian Armstrong also stated that India had indicated a massive willingness with UPI.
The regulatory Situation in India remains unclear. The 30% tax on crypto transactions was very problematic this year. In addition, there are new policies applying to crypto advertising.
Last year, Coinbase highlighted that it was executing a hiring strategy for a technological center that it had founded in India. It was opening vacancies in which it brought programmers a single payment of USD 1,000 in digital assets.
By: Jenson Nuñez
