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.
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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.
- Initially launched in the U.S., U.K., Germany, and Ireland, Coinbase One offers its subscribers zero-fee trading, improved staking rewards, 24/7 customer support, and more.
- The $29.99 per month service also offers additional benefits through Coinbase’s partnerships, and will be rolled out to 31 additional countries in the coming months.
Coinbase CEO Brian Armstrong speaking at TechCrunch Disrupt SF 2018. Steve Jennings/Getty Images for TechCrunch
- The U.S. SEC claimed in its response that it was under no obligation to issue new regulations for crypto, and that rules for crypto were already published and were sufficient.
- The agency also tried to distance itself from any public comments made by its chair Gary Gensler, particularly regarding his statement that most cryptocurrencies are securities.
- Ishan Wahi was sentenced to 24 months in prison for his illegal use of confidential information he obtained during his time at Coinbase.
- Wahi, his brother, and a friend, had allegedly made around $1.5 million between June 2021 and April 2022 by purchasing digital assets before their Coinbase listing was announced.