US-based crypto exchange Coinbase has suspended the support for payments made via united payments interface (UPI) for crypto purchases in India.
The firm, which launched its operations in India recently, ‘temporarily disabled’ payments using the Indian payment system on its app after it came under the regulatory lens of the National Payments Corporation of India (NPCI).
NPCI said in a statement last week that it is ‘not aware of any crypto exchange using UPI’ after Coinbase said its users will be able to use UPI for buying and selling crypto on its platform.
Developed by NPCI, UPI is an instant real-time payment system that enables inter-bank transactions through mobile phones.
Coinbase will work with NPCI and other relevant authorities to ensure its operations are in line with local expectations and industry norms, according to a report by Money Control last week.
Coinbase said in a statement to the publication: “As we enter the Indian market, we are actively experimenting with a number of 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.”
The developments come a week after Coinbase said that it is planning to ‘invest heavily’ in its India hub and recruit more than 1,000 people in the country by the end of this year.
The firm, which launched its Indian tech hub last year, currently has over 300 full time staff in the country.
Last month, Coinbase blocked over 25,000 wallet addresses linked to Russian individuals or entities suspected of illicit conduct following an internal investigation.