WazirX and CoinSwitch Kuber, two of India’s largest exchanges, announced this week that they have suspended rupee deposits through UPI, the popular payment interface they use for this purpose, causing concern in a country where regulatory certainty is still lacking despite the enormous popularity of Bitcoin.
UPI is a widely used real-time payment system in India that is regulated by the central bank.
In response to concerned users, the two exchanges clarified that the withdrawal of funds through the UPI interface has not been suspended and is working as normal. Coinswitch Kuber noted in a tweet that “UPI deposits are currently disabled for all users; however we are striving to restore it as soon as possible. Please be patient.”
India has been developing legislation to regulate cryptocurrencies for years, with a move backed by the central bank due to concerns about dangers to financial stability, although the recent decision to tax cryptocurrency income signals approval from the authorities.
For its part, the operator of the state-backed UPI system claimed that it was not aware of its use by any exchange.