Once again Indian crypto investors are in big trouble. CoinSwitch has completely stopped rupee deposits with UPI and bank transfers like NEFT, RTGS and IMPS.
Indian crypto investors are again in trouble, as most cryptocurrency exchanges such as CoinSwitch Kuber, WazirX and CoinDCX have banned deposits through Unified Payments Interface (UPI), a widely used payment system
This suspension has come as a big blow to crores of small crypto investors in India.
Because UPI has been one of the most preferred avenues for depositing money in crypto exchanges. The total transaction value on UPI was above $1 trillion in the last fiscal. According to the information, CoinSwitch has completely stopped depositing money with UPI and bank transfers like NEFT, RTGS and IMPS.
WazirX currently only allows deposits through net banking and person-to-person (P2P) transfers. Also, limited banking options were available for depositing Rupees through net banking on WazirX, which is India’s largest exchange in terms of trading volume.
Investors took to Twitter to vent their anger: Investors took to Twitter to vent their anger as payment gateways of most major banks like HDFC Bank and ICICI Bank were not supported on the exchange. While there has been no official statement from the exchanges, according to the support handle of CoinSwitchKuber on Twitter, the UPI deposit facility has been disabled to ensure compliance with all Indian laws and regulations.
On the other hand, WazirX, responding to a tweet from a client, said that there is still uncertainty in the banking sector to provide services to the cryptocurrency industry. WazirX and CoinSwitch have a combined user base of over 207 million.
Case open because of US exchange: The recent issue of deposit money came to the fore after the National Payments Corporation of India (NPCI) clarified last week that it was not aware of any crypto exchange using UPI. The clarification was issued after US-listed crypto exchange Coinbase Inc announced its entry into India, which said it would allow its users to buy cryptocurrencies through the UPI system.
