CoinSwitch Kuber, another blow to the Indian crypto economy, has temporarily halted crypto purchases.
Users were not able to make an instant payment via the Unified Payments Interface (UPI) or bank transfers via NEFT/RTGS/IMPS, according to media sources.
In India, the number of cryptocurrency purchase choices has shrunk.
The news comes after the country’s payments agency stated that it was “not aware of any crypto exchange” using its fast payment system. Coinbase India soon followed suit, retracting its official statement that the platform enabled UPI transfers.
While regulators and crypto players have yet to make a formal statement on the topic, the decision was made due to regulatory uncertainties in the domestic sector. CoinSwitch Support has said that crypto deposit and withdrawal operations would be unavailable until a framework is in place.
The exchange’s reaction indicates that additional guidelines are on the way, as a stakeholder stated that “we are already in talks” with policymakers about crypto supervision.
Mobikwik, another e-wallet service provider, has lately withdrawn its services on cryptocurrency exchanges. In this regard, Binance’s domestic subsidiary WazirX has issued a warning on its app, instructing customers to use accessible alternatives following April 1 framework modifications.
MobiKwik also failed to explain why it was removing its services to the crypto platforms, according to reports.
We do know, however, that India’s new taxation framework for virtual digital assets went into force on April 1. This is also the time when the bitcoin sector expects a bill. However, industry rumor has it that India plans to draft significant crypto legislation only after a worldwide agreement is reached.
As trading volumes plummet, no legislative bill is in sight.
However, until that time comes, the exchanges will have to contend with a drop in trade volume. According to research firm CREBACO, volume has dropped by nearly 50% on average across exchanges since last week.
At the time of writing, WazirX, one of India’s most popular exchanges, had a 24-hour trading volume of $57,617,455. On the 30-day chart, the exchange had a volume increase around April 1, then fell to its lowest point on April 11.
Having said that, WazirX CEO Nischal Shetty took to Twitter earlier today to highlight how India is missing out on web3 innovations. Of course,as a result of its rules and “banking challenges.”
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