On Sunday, three days after adding support for the popular Unified Payments Interface payment instrument in India, Coinbase – the largest US-based cryptocurrency exchange – removed the functionality to buy bitcoins from help system in india.
UPI is a real-time instant payment system designed by India’s National Payment Corporation to enable interbank transactions via mobile phone on Coinbase’s Indian services.
The NPCI is a special unit of the Reserve Bank of India, under the aegis of the country’s Ministry of Finance.
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“Purchases with this payment method are temporarily unavailable. Please try another payment method. Sorry for the inconvenience,” the Coinbase mobile app said Sunday.
The exchange has already revised its payment methods information on its website for Indian consumers, advising them to place sell orders through the Immediate Payments (IMP) service.
Will NPCI collaborate with Coinbase?
Coinbase said in a statement that it is dedicated to working with the NPCI and other relevant authorities and exploring other payment options.
TechCrunch reported on Friday that it has asked Coinbase if it intends to continue supporting UPI payments as it works with various authorities. The company did not respond to the survey.
The statement from the payment agency, which is a special section of the Indian central bank, highlighted why other cryptocurrency exchanges in India have struggled to offer UPI, the most common online payment method. in the country.
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According to Chief Executive Brian Armstrong, Coinbase expects to more than triple its workforce in India this year to around 1,000 people.
India will serve as Coinbase’s technology hub for global product development, with half of new hires being engineers, according to Pankaj Gupta, director of the company’s India site.
Mass hiring in India
The South Asian nation will supply about 25% of the 2,000 workers Coinbase expects to hire this year in engineering, product, and design.
The NPCI said on April 7 that it does not recognize the legal status of cryptocurrency exchanges that use the Reserve Bank of India’s UPI, despite Coinbase announcing its services.
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The suspension may have been precipitated by this remark:
“Regarding various media claims regarding the purchase of cryptocurrencies through UPI, the National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange that accepts UPI payments.”
The RBI has repeatedly expressed concern about cryptocurrency and suggested it should be banned.
In light of this, various sources have said that aggregators and lenders have been told to refrain from working with cryptocurrency exchanges.
However, crypto exchanges have been able to operate in India so far due to unclear industry regulations.
Featured image from History.com, chart from TradingView.com