According to reports, two prominent Indian cryptocurrency exchanges have ceased accepting deposits through a popular payment method, prompting concern in a nation where regulatory clarity remains missing, despite Bitcoin’s great popularity.
According to news reports, Indian cryptocurrency exchanges WazirX and CoinSwitch Kuber have banned rupee deposits for the purpose of acquiring cryptocurrencies using the United Payment Interface (UPI).
UPI is India’s most commonly utilised real-time payment system, overseen by the central bank. In the previous fiscal year, the total value of UPI transactions topped $1 trillion.
To reassure concerned users, the two exchanges indicated that they may continue withdrawing cash using the interface.
According to Coinswitch Kuber, “UPI deposit is presently stopped for all users, however we are working to restore it as soon as possible.” Please exercise patience.”
India, the world’s second-most populous nation, has spent years creating laws governing cryptocurrencies, with a measure backed by the central bank due to worries about financial stability risks, but a recent move to tax cryptocurrency revenue suggests agreement by authorities.
According to CoinGecko statistics, the top three Indian cryptocurrency exchanges transacted roughly $140 million in the previous 24 hours.
Thursday’s moves follow a one-line statement issued last week by the National Payments Corporation of India, the operator of the state-backed UPI system that permits bank transfers, in which it declared that it was unaware of any cryptocurrency trade using the system.
Indian Crypto Investors Are Growing: Digital money is incredibly popular in India. Over the previous year, Indian cryptocurrency investments have skyrocketed in popularity, ballooning to a multibillion-dollar sector. In the nation, between 15 and 20 million individuals possess cryptocurrencies.
However, the country’s legislative framework is unclear: India’s central bank previously proposed prohibiting bitcoin, despite the fact that parliament approved a 30% tax on income from digital assets in February.
According to some accounts, trading activity plummeted as a result of the new rule, with volume on WazirX, India’s biggest exchange, plunging by 71%.
Investors expressed their disappointment on Twitter when the exchange refused to accept payment gateways from the majority of large banks, including ICICI Bank and HDFC Bank.
“You have blocked the INR deposit without giving any details. At the very least, tell us of the length of the closure,” Avijit Debnath, a Twitter user, said throughout the conversation.
CoinDCX, another huge cryptocurrency exchange with over ten million clients, permitted just bank transfers but had a 3,000 minimum deposit.