Multiple crypto exchanges in India are facing issues with banking services based on UPI system because banking service provider agencies believe no crypto is legal and they are not aware if any crypto exchanges have legal authority to use UPI payment services.
In India, crypto trading is legal under the crypto tax bill, which includes a 30% tax on Income generated with every transaction. On one hand, these things are giving full relief for the crypto traders, at least there is room for the crypto Industry. But on the other hand, the majority of the crypto exchanges are not getting that level of better support from banking services in this situation.
Around three days ago, Coinbase exchange launched its South Asian subcontinent, which includes expansion of crypto offerings in India significantly. But recently the majority of the exchanges including Coinbase, noted that they are not getting support from RBI’s United Payments Interface (UPI) services.
Reportedly Coinbase exchange responded to this issue and stated that it will work on this matter with the banking and regulatory authorities to fix the issues and ensure the services will remain in compliance.
On twitter, many users noted that they are getting notifications in their crypto accounts on multiple Crypto exchanges, that UPI services will not remain available or there are some issues.
Earlier this, On 7 April National Payment Corporation of India (NPCI) released its statement on Crypto and crypto exchanges and noted that crypto-assets don’t fall under the legal assets category. Agency also stated that no one crypto exchanges or crypto companies have the legal authority to use UPI payment services. So indirectly hinted that UPI payment services may be blocked for the crypto companies, which will further result in a big issue for the crypto users to deposit funds on crypto exchanges.
“Concerning some media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI.”