Indian cryptocurrency exchanges, CoinSwitch Kuber and WazirX have joined the bandwagon of disabling rupee deposits using the United Payments Interface (UPI) to buy cryptocurrencies. This has alarmed Indian investors as they seek more clarity on cryptocurrency regulations.
CoinSwitch Kuber which has more than 15 million users, did not allow users to load deposits into its apps, although withdrawals were still allowed.
Rival WazirX through his Twitter account informed his users that UPI is not available. He also added that they did not have an estimated time limit to fix the problem.
Additionally, WazirX in a statement mentioned that its UPI deposit facility had been disabled in December, however the exchange did not elaborate.
The move by the two crypto exchanges comes after Coinbase and MobiKwik disabled INR deposits using UPI.
Coinbase on its website has warned that "As of April 10, purchases are currently disabled due to an ongoing issue we are experiencing with the UPI system. We are working hard to resolve the issue and recommend checking your account periodically. to see if the problem is fixed.
"Please note that we do not support any other payment method to purchase crypto at this time. Thank you for your patience and understanding," Coinbase added.
Coinbase, which debuted on the Indian market on April 7, had hinted that it accepts payments via UPI. However, right after that, the National Payments Corporation of India (NPCI), which oversees UPI's operations, clarified in a statement that they were not aware of any crypto exchanges using UPI.
On April 7, NCPI clarified by saying, "With reference to some recent media reports of buying Cryptocurrencies using UPI, the National Payments Corporation of India would like to clarify that we are not aware of any Cryptocurrency exchanges using UPI." .
"Regulatory clarity is the need of the hour," said Abhishek Malhotra, founding partner of TMT Law Practice. "There are currently many conflicting signals about the regulatory regime, leading to a lack of certainty," Reuters reported.
As of April 1, under the Finance Bill 2022, a 30% capital gains tax is imposed on cryptocurrency transactions. In addition, a loss incurred during the transfer of the virtual asset will no longer be permitted to be offset against any income calculated under the "other" provision of the IT Act, as the word "other" has been removed.
Additionally, 1% TDS will be deducted from crypto assets starting in July.
On Wednesday, according to CoinMarketCap, the global crypto market capitalization is $1.87 trillion, an increase of 0.27% from the last day. The total volume of the crypto market in the last 24 hours is $89.46 billion, which is a decrease of 11.78%.
Furthermore, the total volume in DeFi is currently $9.78 billion, 10.93% of the total 24-hour volume of the crypto market. The volume of all stable coins is now $74.36 billion, which represents 83.12% of the total 24-hour volume of the crypto market.
According to live trading performance from CoinMarketCap, the price of Bitcoin is currently $40,015.97. Bitcoin dominance is currently at 40.77%, down 0.26% on the day.
