CoinSwitch platform restricts all payment modes of crypto purchase

CoinSwitch platform restricts all payment modes of crypto purchase

Earlier Coinbase disabled the UPI option on its platform offering zero options for buying cryptocurrencies

Indian cryptocurrency exchange platform, CoinSwitch Kuber has disabled all modes that facilitated crypto purchases on its platform along with bank transfers.

The announcement followed two days after Coinbase was forced to disable the Unified Payments Interface (UPI) – the only option on the platform that allowed crypto purchases.

Following the trend, CoinSwitch has now muted UPI and other modes including bank transfers that were used to deposit temporarily, leaving users without any option to install the app’s wallet for cryptocurrency purchases.

Speculations have it that the move will largely affect the platform’s trading volumes which reported more than 14 million users in 2021.

Ever since the latest regulatory framework on cryptocurrency was deployed on April 1st, imposing a 30% tax on cryptocurrency-derived gains, India’s crypto exchange ecosystem has been in a volatile state.

Consequentially, various payment options provided by exchanges have been restricted, for instance, Mobikwik withdrew its services starting this month, removing from the market the only wallet that operated across multiple platforms.

Next up, Coinbase launched a crypto trading service in India during a mega-event promoting UPI options for purchase, however, soon after the launch, the National Payments Corporation of India (NPCI) clarified zero accountability for any crypto platforms offering UPI options.

Thereafter, Coinbase temporarily terminated the UPI option with no solutions on its platform enabling the purchase of cryptocurrencies.

Moreover, Coinbase Ventures, which is an investment arm of the NASDAQ-listed firm, has also infused in India’s only two unicorn crypto exchanges - CoinSwitch and CoinDCX.

Starting April 1, trading volumes in the country have plummeted due to the turmoil caused by the taxation and to worsen, Mobikwik’s sudden removal of its wallet.

Various credible research sources cited that the trading volumes reduced by 50% in first week of April.

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