Three days after the launch of Coinbase’s cryptocurrency trading platform for Indian users, it was noticed that the company stopped using the country’s main payment service United Payments Interface (UPI).
The head of the company, Brian Armstrong, referred in his comment to technical errors in the work of UNI due to “unofficial actions” of the Reserve Bank of India (RBI), which acts as a central financial institution.
Previously, the main treasury authority imposed a ban on the cryptocurrency activities of the country’s banks. This decision has been appealed and is no longer valid following a ruling by the Supreme Court of India in March 2020.
On April 1, 2022, the government adopted a set of bills regulating the trading of digital assets, according to which Indian investors have the opportunity for legal crypto activities subject to a 30% income tax.
In practice, the ban of the Reserve Bank continues its informal effect, and prevents making payments using the UNI service. The head of Coinbase spoke sharply about government agencies obstructing the company’s activities behind the scenes, and plans drastic steps:
“The company adheres to the concept of actively launching operations in the territory of new jurisdictions. We are ready to work with the supreme regulators for the sake of Coinbase’s presence in the region.”
Earlier edition informed that the head of the Indian Reserve Fund, Shaktikanta Das, spoke negatively about activities related to cryptocurrencies and insists on its negative impact on the country’s macroeconomics.