Just days after its launch in the world's second- biggest internet market, Coinbase suspends the option to buy cryptocurrencies including Bitcoin, Ethereum and Dogecoin, using Unified Payments Interface (UPI) in India.
This happened after America's leading cryptocurrency exchange, during its launch in India the previous week, stated it was working on getting UPI on its platform for all its users. This development was followed by an announcement from India's central bank subdivision, stating it wasn't aware of any crypto exchange using UPI payments tools.
Currently, the Coinbase app shows that its users can sell crypto through the Immediate Payment Service (IMPS) method but the option to buy isn't available.
In response to the NPCI statement, a Coinbase spokesperson said, "As we enter the Indian market, we are actively experimenting with a number of payment methods and partners to enable our customers to seamlessly make their cryptocurrency purchases. One of these methods is UPI, simple to use and rapid payment system."
UPI has experienced a massive growth over the previous years and has become one of the most popular modes of payment in India. According to the National Payments Corporation of India (NPCI) data, payments worth $1.09 trillion were processed through the UPI during the past year.
This may have been the first time Coinbase is experiencing such an obstacle but this isn't new for cryptocurrency exchanges in India, which have been experiencing regulatory obstacles from the Indian government through the years. The country's government has been strongly against the decision of cryptocurrency trading and mining and is looking to regulate the use of virtual assets in India.