Dimapur, April 10 (EMN): Indian mobile wallet company Mobikwik and US-based crypto exchange Coinbase has halted the Unified Payments Interface (UPI) services for cryptocurrency transactions in India.
The move comes after the National Payments Corporation of India (NPCI) put out a statement on Thursday saying that it was "not aware of any crypto exchange using UPI."
Statement by NPCI as on 7th April 2022. 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. Please see attached document pic.twitter.com/lGTcaSLKeC
— NPCI (@NPCI_NPCI) April 7, 2022
UPI is a popular instant real-time payment system developed by the NPCI that allows peer-to-peer and person-to-merchant transactions.
Coinbase, the world's largest crypto exchange, launched in India on April 7 and the company made it clear during the launch event that it intended to make UPI central to its services. "India has shown a great willingness with UPI," Coinbase CEO Brian Armstrong said.
Indian e-wallet company Mobikwik also uses UPI to enable crypto transactions in popular Indian exchanges like WazirX.
However, as of today, UPI services are temporarily unavailable on both platforms fuelling speculation on social media.
MobiKwik has withdrawn its services from the crypto exchanges.
— Kashif Raza (@simplykashif) April 10, 2022
Seems like they have done it to avoid NPCI wrath.
In response to the statement, Coinbase said that it was "committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms."
It is not clear whether the UPI services were suspended by the NPCI or by the exchanges. Cryptocurrencies are no longer illegal in India after India’s Supreme Court overturned the Reserve Bank of India’s ban on crypto over two years ago.