Coinbase India Suspends UPI Payments Shortly After Launch

  • The exchange has stopped accepting payments through the United Payments Interface system only three days after its launch in India.
  • The system is governed by the National Payment Corporation of India, which said it was “not aware of any crypto exchange using UPI” only hours after the exchange was launched.
Coinbase india

Shutterstock

Popular cryptocurrency exchange Coinbase has stopped accepting payments from the United Payments Interface (UPI) only three days after launching in India, the Economic Times reported on 10 April.

The crypto exchange has already updated its payment method information for Indian users, asking then to begin using the Immediate Payment Service (IMP) to place sell orders. The UPI — which was made central to Coinbase’s services in the area — is an instant real-time payment system developed by the National Payment Corporation of India (NPCI) to facilitate inter-bank transactions through mobile devices.

On Thursday, hours after Coinbase began trading in India, the NPCI said it was “not aware of any crypto exchange” using the UPI system. In response, a Coinbase spokesperson noted the company was actively experimenting with a number of payment methods and partners in India to make crypto purchases seamless, which included the UPI system. He said further:

“We are aware of the recent statement published by the NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure that we are aligned with local expectations and industry norms.”

Outlook India also reported that MobiKwik — the most used wallet for crypto transactions in India — has also stopped its services to “all major crypto exchanges” in the country amid regulatory uncertainty.

Discussion
Related Coverage
Coinbase to Shut Down Coinbase Pro Platform
  • Launched in 2018, Coinbase Pro was designed to provide advanced traders with unlimited trading volumes, as well as a larger choice of cryptocurrencies.
  • Coinbase plans to replace “Pro” with its Advanced Trade feature by the end of the year, bringing all of its services under the same platform.
June 23, 2022, 3:05 PM
Coinbase co-founder and CEO Brian Armstrong speaking at TechCrunch Disrupt SF 2018

Coinbase co-founder and CEO Brian Armstrong speaking at TechCrunch Disrupt SF 2018. Steve Jennings/Getty Images for TechCrunch

Coinbase to Expand Presence in India
  • CEO Brian Armstrong revealed that Coinbase was planning to quadruple the number of employees in its Indian tech hub.
  • Coinbase’s investment arm will be holding an in-person event in Bangalore on 7 April, where it plans to invest $1 million in crypto and web3 companies.
Coinbase Wallet Adds Support for Solana Tokens
  • Coinbase users can now use the exchange’s self-custody wallet to store, send, and receive SOL and Solana-based tokens.
  • The exchange also revealed it was looking to add wallet support for Solana-based NFTs and dApps in the near future.