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Coinbase suspends UPI payment service in India after 3 days of launch

The largest US-based cryptocurrency exchange Coinbase has discontinued its United Payments Interface (UPI) payment service on its platform for Indian users just three days after its launch in the subcontinent South Asia.

UPI is a payment gateway managed by National Payments Corporation of India (NPCI) that supports purchase orders on Coinbase services in India. The exchange has updated the payment method information on its website for Indian users, which urges users to try the Instant Payment Service (IMP) to place sell orders.

NPCI is a special division of the Reserve Bank of India (RBI), under the Ministry of Finance.

Financial news outlet Business Standard reported on April 11 that Coinbase stated that it will work to remedy the situation in India with the appropriate regulators and that it is “committed to working with the NPCI and other stakeholders.” other relevant authorities to ensure alignment with local expectations and industry norms.”

NPCI said in an April 7 statement that it does not recognize the legal status of any crypto exchanges using RBI’s Unified Payments Interface (UPI) even after Coinbase announced publish your service.

“With reference to several media reports surrounding the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchanges using UPI.”

Coinbase users in India don’t seem surprised by the sudden service halt. Crypto India YouTube channel co-founder, Aditya Singh, tweeted on April 11 that “This is not new, Indian exchanges have also been facing payment service issues since 2018”.

At this point, Indian traders may be used to the uncertainty in access to trading services. The government of the country has struggled to adopt a suitable regulatory framework for cryptocurrencies as market participants have witnessed some speculation that cryptocurrencies may be banned there.

Coinbase Ventures, the investment arm of Coinbase, announced last month that it plans to invest $1 million in India’s Web3 and crypto industry. The plan does not seem to have been affected by the exchange’s service suspension.