Coinbase suspends UPI payments in India days after launch – TechCrunch

Crypto giant Coinbase has suspended support for the UPI payment instrument on its app in India, again rendering its eponymous exchange non-functional for any order forms less than three days after the trading service launched on the second largest Internet market in the world.

Users in India attempting to purchase a token listed on the Coinbase app are advised that the UPI payment method is “currently unavailable”. The app invites users to try another payment method, but currently it does not support any other purchase method in the country, according to several users.

The move follows a bizarre statement from the National Payments Corporation of India, the governing body that oversees UPI in the country, which said hours after Coinbase launched in India that it was unaware of any ‘no crypto exchange using the UPI payment instrument.

A Coinbase executive talks about UPI payments in India at the company’s inaugural event on Thursday. (Image credits: Coinbase)

In a statement later that day, Coinbase said it was committed to working with the NPCI and other relevant authorities. TechCrunch had asked Coinbase on Thursday whether it plans to continue supporting UPI payments while it engages with various authorities. The company did not answer the question.

The statement from the payment body, a special division of India’s central bank, highlighted why other crypto exchanges in India have had issues with supporting UPI, the most popular medium for Indians to carry out online transactions.

Crypto is not illegal in the South Asian market, but the Reserve Bank of India continues to argue that virtual digital assets need further scrutiny. India’s Supreme Court struck down the Reserve Bank of India’s ban on crypto more than two years ago, but banks, on the whole, continue to side with the bank central. The NPCI statement seems to suggest that UPI is still banned for crypto in India.


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