TL; DR Breakdown
- Indian traders show concerns over UPI deposit suspension
- Users can only withdraw funds
- Traders want a timeframe to solve the issue
Indian traders are presently in panic mode going by the situation going on across the country in recent times. The country has not been able to drum up a crypto regulatory framework as opposition parties continue to call for a ban on the assets. However, in a recent development, two of the biggest crypto exchanges in India have suspended Bitcoin deposits using the UPI. Indian traders are surprised by the decision despite the increased popularity an asset like Bitcoin has gained over the last few years.
Users can only withdraw funds through UPI
According to the reports across the country, the exchanges in question are WazirX and CoinSwitch Kuber. With the new update, traders on the platform of both exchanges will no longer be able to leverage the United Payment Interface to make deposits. Notably, both crypto exchanges allow users to deposit their funds through this method used to purchase digital assets. Besides these two exchange giants, other digital assets have also leveraged the UPI on several exchanges, among other deposits methods.
The total amount of payments done using the UPI has toppled a little above $1 trillion in a recent report. Responding to the agitations of users, both platforms have mentioned that Indian traders can only use the interface to withdraw funds at this time. In an update by CoinSwitch Kuber, the exchange mentioned that its engineers are working tirelessly to restore the deposit interface of the UPI on its app.
Indian traders want a time frame to solve the issue
India has continued to struggle on the way to go regarding the drumming up of the regulatory framework that will govern the crypto sector. Although banks have warned of the financial impact of digital assets, authorities are not having any of it going by the recent tax on digital assets in the country. According to a CoinGecko stat, the top three exchanges in the country have completed about $140 million in transactions since yesterday.
This recent action is coming off the back of a statement by the UPI where it denied any knowledge of exchanges making use of its services. However, India continues to record a massive influx into the crypto market. With more people in the sector, there has been a massive rise in crypto investments in the country. A recent survey showed that about 20 million people own one form of crypto in India.
Despite all this, Indian traders continue to face uncertainty in the market despite the tax leverage on their holdings. Traders have also taken to respective online platforms to show their frustrations at the occurrence. Some traders want the exchanges to talk to users regarding the time frame of the outage.