The largest US cryptocurrency exchange, Coinbase, which recently launched its trading platform in India, has reported pressure from local regulators. Against the background of the resulting conflict, Coinbase announced that the provision of certain payment services is going to be suspended.
As of today, Indian Coinbase users will reportedly no longer be able to transact through the United Payments Interface (UPI) payment service. It is noted that these measures were taken by the trading platform just a couple of days after the launch of its representative office on the territory of the South Asian subcontinent.
United Payments Interface is a popular web-based payment portal regulated by the National Payments Corporation of India. This service made it easier for local traders to carry out various transactions on the Coinbase exchange for less than three days.
Now that the UPI payment gateway is unavailable, the trading platform encourages its Indian users to use the Immediate Payment Service (IMP) to place orders to sell/buy digital assets.
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The termination of cooperation with a very convenient and popular payment service caused a lot of questions from Coinbase users. Everyone was interested in the reasons why Coinbase before it had time to start its activities in India, abandoned its partnership with the leading payment system. Despite the excitement among traders, the trading platform did not explain its decision in any way, which cannot be said about the media. So, for example, the business publication Business Standard shared with the public the news that a small conflict had arisen between Coinbase and local financial regulators.
Without giving details, the publication says that the trading platform will be able to continue full-fledged work in India only after it fulfills several additional requirements.
“We intend to continue our recently launched fruitful cooperation with the National Payments Corporation of India. Our team is committed to taking all necessary steps to fully meet the expectations of local regulators and comply with all industry regulations,” writes Business Standard, citing a Coinbase source comment.
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Based on the statement made by the exchange employee, it appears that Coinbase will soon comply with the requirements of the regulator and resume accepting payments through the United Payments Interface system.