The Indian government has long toyed with the idea of banning or regulating cryptocurrency due to the risks and instability. However, recently the government has taken the decision to impose a tax on income from cryptocurrency and other digital assets.
WazirX said on Twitter on Wednesday that “UPI is not available” and suggested users make P2P payments instead, which have no fees. The platform also added that it has no estimated time to resolve the issue of UPI deposits. During this time youThe sers expressed their concerns on social media. “You have closed the INR deposit without any information. At least let us know how long it will be closed,” Twitter user Avijit Debnath asked CoinSwitch on the social media platform.
The Nasdaq-listed crypto exchange Coinbase, which recently launched in India, has disabled crypto purchases “due to an ongoing issue we are having with the UPI system.” The exchange clarified, “Note that we do not support an alternate payment method for buying crypto at this time.”
Crypto Exchanges Disable UPI Deposits
An industry source familiar with the matter said the decision to stop UPI payments by CoinSwitch follows “regulatory uncertainty” after the NPCI statement. CoinSwitch Kuber and WazirX declined to officially comment on the matter.
The Indian government moved to tax income from cryptocurrencies and other digital assets at 30%, a move that was seen as a sign that authorities have embraced digital currencies. In October, CoinSwitch reported raising over $260 million (approximately Rs 1,980 crore) at a valuation of $1.9 billion (approximately Rs 14,500 crore), underscoring the popularity of crypto trading .
Meanwhile, crypto trading volumes declined in India after the 30% tax on crypto income came into effect from April 1. From July 1, a 1% withholding tax (TDS) will also be applicable on crypto transactions. There is currently no official data on the size of the Indian crypto market, but industry estimates suggest that investors will be between 15 and 20 million, with a stake of around Rs 40,000 crore.