Indian government receives calls to restore UPI use for crypto exchanges: report

Indian government receives calls to restore UPI use for crypto exchanges: report

of the Indian state government is currently presenting a new proposal to restore the use of the UNIFIED PAYMENTS Interface (UPI) of the country for crypto exchanges active in India, in addition to two earlier suggestions.

The latest development took place after the supervisory authority for the real-time intercourse payment network claimed in 2022 that she did not know that crypto exchanges used the UPI service.

A third proposal on the way

The Indian Bharat Web3 Association (BWA), a representative of interests for cryptocurrencies founded in November 2022, could be the latest committee Submit A proposal to the Indian government and the Reserve Bank of India (RBI) regarding the access to the UPI of the state for crypto exchanges. Two companies have already made similar suggestions, BWAs are expected to be available in a few weeks.

bwa was founded after the dissolution of the Blockchain and Crypto Assets Council (BACC), an organization of the Internet and mobile association of India (Iamai), which also called for the recovery of the UPI for cryptofire in the country. According to the then Iamai, the advocacy of interests was dissolved due to the uncertain regulatory environment in India.

In April 2022 the National Payments Corporation of India (NPCI), a department of the RBI, explained that they do not know that crypto exchanges use the UPI function. The explanation came hours after the crypto exchange giant Coinbase announced its support for Upi when buying cryptocurrencies. The explanation of NPCI also prompted Cinswitch Kuber and Wazirx to deactivate deposits in Indian rupees.

Upi, which is widespread in India, is a real-time interbank payment system that enables peer-to-peer (P2P) and peer-to-merchant transactions (P2M). It was developed by the NCPI in 2016.

Since there are two suggestions and a third on the way, it remains to be seen whether the government will change its attitude or maintain the existing restrictions.

The acceptance of cryptocurrencies continues to increase in India

Meanwhile, cryptocurrency exchanges are still fighting with the country's unfavorable regulatory policy for the industry. After the introduction of the 30 percent tax to the transfer of digital assets and the 1 percent transaction tax deduction (TDS), the stock exchanges complained of how the high taxes have increased to their growth.

In December 2022, the BWA presented recommendations to the Indian Ministry of Finance in which it called for a relief in the unfriendly crypto control. However, the situation remains unchanged.

Despite the government's attitude towards cryptocurrencies, acceptance in India continues to increase. According to a current report, there could be over 156 million users of cryptocurrencies in the country by the end of 2023.

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