Two Crypto Exchanges In India Have Disabled Deposits Through UPI

Two major Indian crypto exchanges, CoinSwitch Kuber and WazirX, have disabled Rupee deposits through the UPI payment system due to regulatory uncertainty. The real time mobile payment system is developed by the National Payments Corporation of India (NPCI) to facilitate interbank transactions and is regulated by the Reserve Bank of India.

The NPCI has stated that it is not aware of any crypto exchange using the UPI. CoinSwitch has decided to close the option to make deposits through the system due to regulatory concerns following the NPCI statement. Users can still withdraw funds. WazirX has also informed customers that UPI is not available. Like CoinSwitch, the exchange did not provide a timeframe for the option to be restored.

On April 1, the company announced that it would close this feature indefinitely and through the popular MobiKwik mobile app. On this day, a 30% tax on income from operations with cryptocurrencies came into force in India. Earlier, the Ministry of Finance noted that the introduction of taxation does not determine the legal status of digital assets. This is the prerogative of the relevant legislation.

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