US-based crypto exchange Coinbase has halted payments via the Unified Payments Interface (UPI) on its app just three days after announcing its plans to launch trading in India.

In a mega event on April 7, the Nasdaq-listed company announced that it would allow users to use UPI. The same night, the National Payments Council of India (NPCI) said it was unaware of any crypto exchanges using UPI.

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Currently, the buying option is unavailable on the Coinbase app, and it shows that users can sell via the IMPS method.

In response to the NPCI statement, Coinbase said, “We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure that we are aligned with local expectations and industry norms.”

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“As we enter the Indian market, we are actively experimenting with several payment methods and partners to enable our customers to seamlessly make their crypto purchases. One of these methods is UPI, a simple to use and rapid payment system,” a company executive added.

Coinbase, the world’s largest cryptocurrency exchange, announced its entry into India on April 7. Its India tech hub employs over 300 full-time staff and plans to hire around 1,000 people in the country this year.

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Coinbase Ventures, the company’s venture capital arm, has already invested $150 million in Indian technology companies in the crypto and Web3 space, and is evaluating new opportunities to help Indian startups scale, Coinbase said. The company entered India as domestic cryptocurrency exchanges were experiencing a sharp decline in volumes following the implementation of a new tax regime.

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Mobikwik wallet, which partnered with major crypto exchanges, has stopped supporting crypto trading. In addition, only a few exchanges currently accept bank transfers for crypto trading. The trading volumes have significantly dropped after the imposition of a 30% tax on gains from cryptocurrencies.