Coinbase, a US-based cryptocurrency exchange, has hit a snag in its expansion plans to launch trading services in India after the National Payments Corporation of India, the organization that oversees UPI (Unified Payments Interface) in the country, wrote on Twitter it was not aware of any crypto exchange using UPI payments in India:
"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."
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According to reports, the exchange has already suspended support for UPI payments although it launched its services a few days prior to the statement. As of press time, Coinbase does not support other payments method in India.
The limitations come after the lower house of India's Parliament passed the "Finance Bill" with controversial amendments regarding the taxation of digital assets. Starting from April, traders in India cannot offset losses on one cryptocurrency with gains on another. In addition, the law also provides for a 30% tax on cryptocurrency transactions and 1% fees under taxes deducted at source.
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