Crypto exchange Coinbase disabled its support for the Unified Payments Interface (UPI) in India on Sunday, just days after marking its entry into the Indian market with an event on April 7, the Economic Times reported.
"Purchases with this payment method are temporarily unavailable. Please try another payment method. Sorry for any inconvenience," read Coinbase's mobile application.
Coinbase, the largest cryptocurrency exchange in the US by trading volume, appears to have come to the attention of the National Payments Corporation of India (NPCI) after saying it would allow users to purchase cryptocurrencies using UPI.
"We are not aware of any crypto exchange using UPI," said an April 7 statement by NPCI.
UPI is a real-time payment system developed by NPCI to facilitate inter-bank transactions using a mobile phone. NPCI is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) for creating a robust payment and settlement infrastructure in India.
Meanwhile, MobiKwik, one of the most used e-wallets for cryptocurrency transactions in India, had also stopped the service amid regulatory uncertainty, the Economic Times said, citing sources.
Coinbase said in a statement reported by Outlook on Sunday: “We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms.”