Coinbase suspends UPI payments within 3 days of launch

Three days after crypto exchange Coinbase opened its door in India, the company stopped the sale of cryptocurrencies here. This happened when Mobikwik pulled its payments support from all crypto exchanges, including Coinbase probing another major setback for India’s cryptocurrency landscape.

Currently, Coinbase has shut down all purchase options for crypto. However, users can still sell their holdings using the IMPS option as a payment method.

Notably, Mobikwik wallet, which had partnered with major crypto exchanges, has stopped supporting crypto trading. Further, only a few exchanges are currently allowing crypto trading using bank transfers.

Coinbase made an official launch in India in its maiden event on April 7, 2022.

On March 26, reports suggested that Coinbase has begun rolling out UPI and IMPS support for its users in India after Indian users noticed the addition of the two payment systems (UPI & IMPS) on Coinbase’s app.

Nasdaq-listed Coinbase started testing UPI payments a few weeks ago, indicating that it is working to broaden its product offerings in the country.

Notably, the day Coinbase launched the option to include UPI as a payment option, the National Payments Commission of India (NPCI) released a statement, noting that it was not aware of any crypto exchanges using UPI.

“With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI,” NPCI said.

“Coinbase Ventures has already invested $150 Mn in home-grown Indian technology companies in the crypto and web3 space, and is constantly identifying new opportunities to help Indian founders scale,” Armstrong said in his company blog post on April 4, 2022.

Of course, these plans now are in limbo as Coinbase scrambles to look for its options.

In a statement, the crypto exchange clarified, “We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms.”

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