Indian Crypto Exchanges Reach Out to NPCI to Restore UPI Services
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"We asked for some time with the NPCI to understand their reservations and put forth our viewpoint to remove any misunderstanding,"
BACC allegedly told NPCI in the letter that some crypto exchanges carefully fulfilled user KYC and other NPCI protocols and requested that the UPI service restores to such enterprises. BACC is a non-profit advocacy group affiliated with India's Internet and Mobile Association (IAMAI). Its members include CoinSwitch Kuber, CoinDCX, WazirX, and all of the significant local crypto exchanges. CoinSwitch founder Ashish Singhal and CoinDCX co-founder Sumit Gupta were named co-chairs of BACC in October 2021.
Suspension of UPI Service to Crypto Exchanges
The National Payments Corporation of India (NPCI) said in April that it is unaware of any crypto exchanges using the UPI service. Due to the clarification, it compelled all major crypto exchanges to disable the "deposit" option in Indian rupees. The suspension of UPI service intends to limit Indian investors' exposure to digital assets until parliament passes a cryptocurrency regulation bill. The National Payments Corporation of India (NPCI) is a division of India's central bank, the Reserve Bank of India (RBI). It also caused payment companies that use UPI to process payments, such as MobiKwik, to suspend services to crypto businesses. All of these events resulted in a significant drop in trade volume.