Allgemein

Crypto Exchanges Push for UPI Access in India: A Move to Revive the Crypto Industry

• India’s cryptocurrency industry has petitioned the government and the Reserve Bank of India (RBI) to restore access to Unified Payments Interface (UPI) for cryptocurrency-related services and activities.
• Major push by crypto stakeholders with two proposals already made to Indian government and RBI, plus a third proposal in the pipeline from Bharat Web3 Association (BWA).
• UPI access was suspended in 2022 due to launch of Coinbase’s operations in India.

Crypto Industry Petitions Government & RBI

The Indian cryptocurrency industry has petitioned the government and the Reserve Bank of India (RBI) to restore its access to the hugely popular Unified Payments Interface (UPI) for cryptocurrency-related services and activities. Crypto exchanges and their users based in India lost access to UPI after it was suspended in 2022.

Major Push by Crypto Stakeholders

Two separate proposals were made to the Indian government and the Reserve Bank of India, asking for the restoration of access to UPI. Furthermore, there is a third proposal in the pipeline, which will be made in the next few weeks by a new crypto policy advocacy group called the Bharat Web3 Association (BWA). The requests represent the first significant push by those in crypto space arguing for policy changes governing an industry left hanging due to ongoing crypto winter, taxes and shadow ban.

India’s Burgeoning UPI Ecosystem

Following Covid-19 pandemic, India has seen a staggering adoption of UPI by its growing tech-savvy population with over 74 billion transactions worth over $1.5 trillion processed through UPI interface in 2022 alone. Citizens using UPI can pay for groceries through QR code linked with bank account without incurring any fee on merchants accepting payments via UPI system.

Trigger For Setback

Indian banks cutting off banking services followed by loss of access to UPI services shortly afterwards can be traced back as response triggered by Coinbase’s launch of operations in India on 7th April 2022 wherein executives highlighted how easy trading on company app would be with UPI processing all payments .

Proposals In Question

The proposals are not related or coordinated with one another but they represent major push by those involved in crypto space advocating policies governing an industry that remains unfavourably dormant despite strong public sentiment towards cryptocurrencies present among citizens today.