Cryptocurrencies are getting increasingly popular in the Indian subcontinent, and investors have put their trust in cryptocurrencies as effective stores of value. The most popular cryptocurrency to exist, Bitcoin, along with other cryptocurrencies, is traded over a reputable Trading Platform.
Coinbase is one such platform, which is based out of the US. Several cryptocurrencies are available on Coinbase, and the website was launched in India recently. Indian crypto enthusiasts found this move made by Coinbase a very profitable one.
However, a recent hiccup has made things slightly inconvenient for Coinbase users in India. Let us talk about what caused this hiccup and understand how severe it is.
UPI Payments and Coinbase
When Coinbase was launched in India, it also integrated UPI payments on its website to make it convenient for Indian users to buy cryptocurrencies. However, the convenience facilitated by this move was short-lived, as a statement made by the NPCI made Coinbase abandon UPI payments temporarily.
A statement was released from NPCI (National Payments Corporation of India) stating that it is not aware of UPI being used to buy cryptocurrency. This led to Coinbase suspending the UPI payment method on its website.
However, in order to ensure seamless crypto trading in the Indian sub-continent, the IMPS method was implied. The IMPS method was capable of substituting the UPI payment method.
Future of UPI Payments on Coinbase
It is hard to predict when Coinbase will allow its users to utilize the UPI payment method. However, the NASDAQ-listed company has made a public statement that it is trying to work with NPCI and other local authorities that are responsible for the governing of online payments in India. The company has assured users that it is trying its best to bring UPI payments back to its platform.
However, the recent turn of events regarding cryptocurrencies shows that the Indian government holds a stern stance against cryptocurrency. It is not completely banned in India, nor is it regulated. This leaves crypto enthusiasts in limbo.
It is clear that the NPCI will not allow crypto payments through UPI unless it is legalized and regulated in India. Therefore, whether UPI payments are going to be back on Coinbase or not is still very much in limbo.
Future of Cryptocurrencies in India
On the one hand, the Supreme Court overturned the RBI ban on crypto, while on the other hand, a 30% tax on crypto gains was imposed by the government. This establishes the fact that even though Cryptocurrencies are not illegal in India, the stance of Financial institutions in India against Cryptocurrencies stays stern.
This often gets confusing for the masses, and they find it hard to understand whether cryptocurrencies are legal in India or not. Moreover, it is important that the Indian government supports companies like Coinbase. Coinbase employs more than 300 people and invests actively in crypto startups such as CoinSwitch Kuber and Coin DCX.
Even though there is no regulatory method that can hold companies back from using UPI on their websites, they usually avoid taking steps that can lead to conflicts with Authorities. Thus, Coinbase has suspended UPI payments over its website to avoid legal issues in the future.
Coinbase has stated that it plans on making long-term investments in India and has already invested more than $150 million in crypto and Web3 ventures. The company aims to accelerate the economic growth of India with the help of the world-class software talent that India is famous for.
A statement was made regarding this, in which the company has indicated that it wants to employ 1000 employees by the end of the year. Thus, it can be said that Coinbase can prove to be crucial for the growth of the crypto industry in India.
Coinbase suspended UPI payments a few days after NPCI made a statement that suggested that it is not aware of the usage of UPI for crypto exchange. In order to avoid future legal issues, Coinbase suspended UPI payments over the platform, which made buying cryptocurrencies harder for Indian crypto investors.
However, the IMPS is still available, which allows Indian crypto investors to sell cryptocurrency over Coinbase, one of the biggest crypto exchange websites.