Indian crypto exchanges, CoinSwitch Kuber and WazirX have joined the band of disabling rupee deposits using United Payments Interface (UPI) to buy cryptocurrencies. This has worried Indian investors as they seek more clarity on crypto regulations.
coinswitch kuber Which has over 15 million users, was not allowing users to load deposits on their applications, however, withdrawals were still allowed.
Rival WazirX informed its users through its Twitter account that UPI is not available. It also said that they had no estimated time frame to fix the issue.
Furthermore, WazirX mentioned in a statement that its deposit facility via UPI was disabled in December, however, the exchange did not elaborate.
The move by two crypto exchanges came after Coinbase and MobiKwik disabled INR deposits using UPI.
Coinbase has alerted on its website that “As of April 10th, purchases are currently disabled due to an ongoing issue with the UPI system. We are working hard to resolve this issue, and we recommend you to… That you check your account from time to time to see if the problem has been fixed.”
“Note that we do not support any other payment method for buying crypto at this time. Thank you for your patience and understanding,” Coinbase added.
Coinbase, which debuted in the Indian market on 7 April, had informed that they accept payments via UPI. However, soon after, the National Payments Corporation of India (NPCI), which oversees UPI operations, clarified in a statement that they were not aware of any crypto exchanges using UPI.
On 7 April, NCPI clarified, “With reference to some recent media reports regarding purchase of cryptocurrencies using UPI, the National Payments Corporation of India would like to clarify that we will not allow any crypto exchanges using UPI.” are not aware of.”
“Regulatory clarity is the need of the hour,” said Abhishek Malhotra, founding partner, TMT Law Practice. “There are currently a lot of conflicting signals on the regulatory regime, leading to a lack of certainty,” Reuters reported.
From April 1, under the Finance Bill 2022, a 30% capital gains tax is levied on crypto transactions. Further, the loss incurred during transfer of virtual asset will no longer be allowed to be set-off against any income computed under the “others” provision of the IT Act as the word “others” has been omitted.
Also, 1% TDS will be deducted from crypto-assets starting from July.
According to CoinMarketCap, as of Wednesday, the global crypto market cap stood at $1.87 trillion, up 0.27% from the previous day. The total volume of the cryptocurrency market over the past 24 hours is $89.46 billion, a decrease of 11.78%.
Furthermore, the total volume of DeFi currently stands at $9.78 billion, which is 10.93% of the total crypto market 24-hour volume. The volume of all stablecoins is now $74.36 billion, which is 83.12% of the total crypto market volume in 24 hours.
Bitcoin is currently priced at $40,015.97, according to CoinMarketCap’s live trading performance. Bitcoin dominance is currently at 40.77%, down 0.26% on the day.