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- Coinbase, the prominent crypto exchange that backed off with its business in India, was due to its firm stand against digital assets.
- The governing body of UPI earlier stated that it was not aware of a crypto exchange using its service.
- Coinbase’s CEO is optimistic regarding the return in the country with regulations and heavy taxations.
In the month of April, just three days following the rollout of Coinbase India, the global exchange’s domestic arm had suspended Unified Payments Interface (UPI) support on its platform.
Brian Armstrong, the Chief Executive Officer at Coinbase, now highlighted and made it clear that after a few days after launching, they ended up disabling UPI because of some informal pressure from the Reserve Bank of India.
The National Payments Corporation of India (NPCI) oversees the UPI, which is basically an instant baking facility for real-time fund transfer. Although the NCPI or the RBI has not released any official advisory against the utilization of payment mechanisms for cryptocurrency trades, the regulators have held back from extending their backing to the asset class in the country.
The NCPI highlighted in April that it is not aware of any cryptocurrency exchange using its platform hours after Coinbase cited that they can use its services to buy and trade cryptocurrencies.
The statement by the Coinbase CEO further brings into the limelight RBI’s vehement position against the asset class. India has been among the countries with skepticism regarding cryptocurrencies. Earlier the RBI Governor Shaktikanta Das raised concerns and risks about the crypto space in terms of stability and for the investors as well.
Furthermore, Armstrong also opined that India is a unique market in the sense that the Supreme court has ruled that they cannot ban crypto. But there are elements in the government there, including the RBI, which do not seem to be so positive about it.
Still, the CEO seems to be quite optimistic about returning to the country, as he signified that he hopes that they will be live back in the country in relatively short order with some other countries where they are pushing international expansion similarly.
Despite everything, India remains a bit tight with regulations and taxations on the crypto industry. It levies heavy taxes on digital assets, and even the banks refuse to entertain crypto merchants.
It is to look forward to if the CEO manages to make a comeback in India and what moves the country would further take when it comes to the crypto industry.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
