Cryptocurrency trading platform CoinSwitch Kuber has
disabled all modes of payments for crypto purchases on its platform, including
bank transfers. The move has drawn significant outrage from the platform users
as they have been stopped from making INR deposits via NEFT, RTGS, IMPS, and
This comes two days after Coinbase, one of the largest
cryptocurrency exchanges, had to disable UPI, the crypto purchase option on its
CoinSwitch, which has over 14 million users, will have a
significant impact on its trading after the move. On the app, UPI payments and bank
transfers have been disabled, leaving users with no option to purchase crypto.
The National Payments Corporation of India (NPCI), the
governing body which oversees UPI in the country, stated after Coinbase’s India
launch that it was not aware of any crypto exchange using UPI payments instrument.
CoinSwitch users took to Twitter to express their
A user tweeted, “One should never use Coinswitch for
investing in Crypto investing. Been facing deposits and withdrawal issues for
the past 1-2 months. Reached out to support for help but as usual “they’re
working on the issue” story goes on”.
“Of India, from Coinswitch Kuber to WazirX to even
Coinbase; all of which have been in the news recently for wrong reasons.
Millions of $$ were in the bank, but none of them had the wisdom about how to
use them properly,” tweeted another.
CoinSwitch support handle responded to a user asking for
a withdrawal process saying, “For crypto withdrawals, we are still engaging
with regulators and policymakers in bringing regulations. Until some clarity is
achieved, the crypto withdrawal/deposit functions will remain disabled on the
CoinSwitch platform. While we understand it’s an inconvenience, we believe that
it’s only a minor bump in our way to regulate crypto in India”.
Also Read | How India’s new crypto tax impacts investors
On April 1, the government implemented a 30% tax on gains
from cryptocurrencies. Since then, payment methods have seen a gradual decline
on crypto platforms. Mobikwik, which was the only wallet across multiple
platforms has also withdrawn its services starting April 1.
There has been a significant
decline in crypto trading since the tax was imposed and it is likely to decline
further as a 1% TDS (tax deduction at source) comes into effect on all crypto
transactions starting July 1.