Crypto exchange Coinbase suspends UPI payments three days after India launch

Just three days after announcing its India launch and Unified Payments Interface (UPI) integration, global crypto exchange Coinbase has halted UPI transactions on its app.

The move came two days after The National Payments Corporation of India (NPCI), which runs the UPI platform, refuted Coinbase's claim of using UPI for crypto transactions.

The NPCI had said, "With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI.”

At the moment, Indian users can avail only bank transfer via IMPS for crypto transactions on the Coinbase app.

When the NPCI statement came out, a Coinbase spokesperson said, "As we enter the Indian market, we are actively experimenting with a number of payment methods and partners to enable our customers to seamlessly make their crypto purchases. One of these methods is UPI, a simple to use and rapid payment system.

"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."

In 2021, Coinbase launched an Indian tech hub, which now employs over 300 professionals.

At the official launch in Bengaluru last week, Coinbase Co-founder and CEO Brian Armstrong said, "I am excited to announce we will have 1,000 employees [in India] by the end of the year."