Daily Management Review

Crypto-exchanges in India face problems with rupee transfers


Crypto investors in India have been deprived of the opportunity to transfer cryptocurrencies to their accounts through a local online payment system, Bloomberg wrote.

At least seven cryptocurrency firms were unable to transfer rupees to their accounts through the Indian government-supported transfer system, Bloomberg writes. Among the cryptoinvestors who were deprived of the opportunity to fund their accounts with rupees were customers of the American cryptocurrency exchange Coinbase, the agency writes.

A few days before the restrictions, in early April, Coinbase product director Surojit Chatterjee announced at a conference in India that crypto investors will now be able to use India's national online payment system Unified Payments Interface (UPI) to purchase digital assets on the platform. Hours afterward, the National Payments Corporation of India, which operates UPI, said it was unaware of any use of its system for cryptocurrency exchange.

Since then, at least four other cryptocurrency trading companies have either stopped transfers through UPI or faced the fact that banks and payment systems no longer support such transfers through their platforms, the agency wrote, citing Bloomberg sources and local media reports. Two other crypto-exchanges lost their ability to support rupee deposits even earlier, Bloomberg wrote.

A Coinbase spokesperson told Bloomberg that the company is "determined" to work with the National Payments Corporation of India and local authorities and intends to show that it meets all requirements and industry regulations.

source: bloomberg.com