TL;DR Breakdown
- Coinbase has halted UPI payment option in India.
- The decision was taken based on the warning and statement from the NPCI.
- Currently only the IMPS payment option is available on the app.
- The popular exchange plans to triple its workforce in India.
Only three days after launching UPI (Unified Payments Interface) for purchasing cryptocurrencies in India, Coinbase has now halted the payment option. The decision came after the NPCI (National Payments Corporation of India) had stated that it was not aware of any crypto exchanges allowing UPI payments in the country.
The US-based crypto exchange later stated that it was committed to working with NPCI and relevant regulators to ensure its operations meet the local regulations. Since then, the Coinbase app has been only showing the IMPS payment option, and the crypto buying option is also unavailable.
The developments are being seen as a major failure for Coinbase and a setback for the entire crypto industry. The popular exchange was warned by industry leaders regarding the potential risks of entering the Indian market. Crypto trading has declined by more than 30% in India since the parliament announced new taxation laws on crypto assets.
Coinbase will continue its expansion in India
Although the UPI mixup is a major setback for Coinbase, the platform still holds long term plans in India. According to its CEO, the exchange is aiming to add over 1,000 new employees to its workforce in India. Almost half of the new recruitments will be engineers, as the company wants to strengthen its technical infrastructure.
The head of Coinbase Operations in India, Pankaj Gupta says that the company understands the complexity and risks of the Indian market, but it is also being seen as a region with abundant potential. India currently has around 15 million active crypto users. There is huge potential for this number to grow throughout the year, but the new tax laws and strict regulations are making it difficult for exchanges to attract new traders.
