The largest U.S. cryptocurrency exchange, Coinbase, which recently launched its own trading platform in India, reported pressure from local regulators. Amid the conflict, Coinbase said that some payment services will be suspended.
According to reports, Indian users of Coinbase from today will no longer be able to conduct transactions through the payment service United Payments Interface (UPI). It is noted that these measures were taken by the trading platform just a couple of days after the launch of its representation in the South Asian subcontinent.
United Payments Interface is a popular web payment portal regulated by the National Payments Corporation of India. This service not full three days facilitated local traders to carry out a variety of transactions on the exchange Coinbase.
Now that UPI’s payment gateway is unavailable, the trading platform recommends its Indian users use the Immediate Payment Service (IMP) to place buy/sell orders for digital assets.
The termination of cooperation with a very convenient and popular payment service raised a lot of questions among Coinbase users.
Everyone was interested in the reasons why Coinbase, not having had time to start its activities in India, refused to partner 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. For example, the business publication Business Standard shared with the public the news that there was a small conflict between Coinbase and local financial regulators.
Without giving details, the piece said that the trading platform will be able to continue full operation in India only after it meets a number of additional requirements.
“We intend to continue our recent fruitful cooperation with the National Payments Corporation of India. Our team intends to take all necessary steps to fully meet the expectations of local regulators and comply with all industry regulations,” writes Business Standard, citing a comment from a source at Coinbase.
Based on the statement made by exchange employee it looks like Coinbase will soon meet the requirements of the regulator and will resume payments through United Payments Interface.
Recall, earlier we reported that before entering the Indian market, Coinbase planned to hire about 1,000 new employees to work in the South Asian representative office.