Indian investors alarmed as crypto exchanges block transfer network

economictimes.indiatimes.com:

crypto exchanges CoinSwitch Kuber and WazirX have disabled rupee deposits for the purchase of cryptocurrency through a widely-used state-backed transfer network, spurring users to renew demands for regulatory clarity. India has spent years working on a law to ban or regulate cryptocurrencies, with a ban backed by the central bank over risks to financial stability, though a recent decision to tax income from them suggests acceptance by authorities. Wednesday's moves follow a one-line statement last week by the National Payments Corporation of India, operator of the state-backed United Payments Interface (UPI), which eases bank transfers, that it was unware of its use by any crypto exchange.

Did you Know?

DeFi is enabling developers to create new financial products like decentralised banking, decentralised money markets and decentralised asset management firms

CoinSwitch was not allowing users to load deposits on its app, although they could still withdraw funds. «You have closed the INR deposit without any information. At least let us know how long it will be closed,» a Twitter user, Avijit Debnath, urged the exchange on the social media platform. CoinSwitch, which says it has more than 15 million users, did not immediately respond to Reuters queries. The NPCI also did not immediately respond. An industry source with direct knowledge of the matter said the decision by CoinSwitch to halt UPI acceptance resulted from «regulatory uncertainty» after the NPCI statement. Rival exchange WazirX also told users on Twitter, «UPI is not available,» adding that it had no estimated time limit to fix the issue. In a statement, WazirX said its deposit facility via UPI had been disabled in December, but declined