Coinbase launch brings UPI use for crypto under lens

economictimes.indiatimes.com:

Mumbai | Bengaluru: The launch of Coinbase Global Inc’s crypto trading platform in the country may have already hit a roadblock. The US-based company’s decision to allow clients to use the Unified Payments Interface (UPI) – a key digital payments railroad – for buying cryptocurrencies in India is under regulatory scrutiny, said sources directly briefed on the matter. Coinbase, which began offering its trading services in India on Thursday, said it was using UPI, which is managed by the National Payments Corporation of India (NPCI), to enable rupee deposits on its platform. NPCI, however, denied any knowledge of “any crypto exchange using UPI”, in a statement issued on Thursday.

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“Banks had no clue. Some other smaller exchanges were also doing it and banks blocked it,” a person aware of the matter said. “Coinbase, because of its scale and much-hyped event on Thursday, has caught everyone’s attention. This is now being investigated.” The person added that the NPCI probably had to step in as there was still no clarity on the legality of cryptocurrencies in India. “After the NPCI clarification, there is little left for banks to do other than stop these accounts,” the person said. In response to NPCI’s statement, a spokesperson for Coinbase said that the platform was “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”.Collection Agent “We are committed to working with NPCI and other relevant authorities to ensure we are