The National Payments Corporation of India, the country’s regulating body for UPI, stated in a statement that it is not aware of any cryptocurrency exchanges that use the UPI payment instrument, only hours after global powerhouse Coinbase started its trading service in India with UPI support. The voluntary statement from the payments organization, which is a separate branch of India’s central bank, explains why other Indian crypto exchanges have struggled to accept UPI on their platforms. Although cryptocurrency is not prohibited in the South Asian market, the Reserve Bank of India maintains that virtual digital assets require more attention.
The Reserve Bank of India’s prohibition on cryptocurrency was overturned by India’s Supreme Court over two years ago, but banks, for the most part, continue to support the central bank. According to the NPCI’s announcement, UPI is still a no-go for crypto in India. The worldwide behemoth revealed its crypto trading business in India at its first India event in Bengaluru earlier on Thursday, which was attended by numerous senior executives, including Coinbase CEO Brian Armstrong. According to the executives, the company’s eponymous app would allow users to buy cryptocurrency using UPI, India’s most popular online payment method.
Coinbase, which owns Indian crypto exchanges CoinSwitch Kuber and CoinDCX, did not name the banking/fintech partners with whom it is collaborating in India, but said in a statement to TechCrunch that it is committed to working with the National Payments Corporation of India (NPCI) and that support for UPI — the sole payment method discussed and demonstrated at the event today — is just one of the instruments it is testing. “Coinbase is proud to be hiring and investing in India, as well as exploring ways to bring the cryptoeconomy’s potential to the country.” The flourishing crypto ecosystem and acceptance of the technology is a remarkable illustration of India’s strong legacy of innovation.
As we prepare to enter the Indian market, we’re testing a variety of payment methods and partners to ensure that our clients can make crypto transactions with ease,” a business spokeswoman stated. “UPI, a simple and quick payment system, is one of these techniques. We are aware of the recent statement issued by the National Payments Corporation of India (NPCI) about the usage of UPI by cryptocurrency exchanges.
We are dedicated to collaborating with the NPCI and other relevant authorities to ensure that we are meeting local expectations and industry standards.” A Coinbase spokesman did not immediately respond to a question about whether the firm wants to continue to support UPI in the nation while it works out the details with the NPCI.