Coinbase, the largest crypto exchange in the U.S., has halted crypto payments in India just a few days after unveiling its services in the country.
This week, the company decided to suspend payment services known as UPI, or the unified payments interface, which is a government-regulated payments system.
Indian customers who make an effort to purchase cryptocurrency on the U.S. crypto exchange Coinbase are out of luck, and are taking to Twitter to complain about receiving notification that payments via the Unified Payments Interface (UPI) are presently unavailable.
On Monday, pre-market trading showed that Coinbase shares plunged 2.5% amid news of the suspension, which prevents Indian users from buying virtual assets on Coinbase in India.
Coinbase launched in India last Thursday, but its UPI goes through the National Payments Corporation of India (NPCI), a section of the country’s central bank.
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On the day of Coinbase’s launch, the NPCI Tweeted that it was “not aware of any crypto exchange using UPI.”
Although Coinbase’s website still says Indian users can only buy crypto using UPI, users who plan to sell cryptocurrency need to use the Immediate Payment Service run by NPCI.
Last month, the Indian parliament approved a 30% tax on crypto profits, treating the virtual assets like gambling profits, effectively taxed in the highest tax band.
According to Reuters, the South Asian country’s crypto market sits at around $5.37 billion, or 400 billion rupees.
Chainalysis’ 2021 Global Crypto Adoption Index shows that India has one of the highest rates of cryptocurrency investment in the world. India is the top country after Vietnam for crypto adoption, with a staggering number of crypto users: more than 100 million Indians invest in crypto, according to one estimate from TripleA, a Singaporean crypto fintech firm.