Mumbai: Cryptocurrency trading platform CoinSwitch Kuber has temporarily disabled all rupee (INR) deposit services on its app as of Tuesday morning via the Unified Payments Interface (UPI) as well as bank transfer route through NEFT/RTGS/IMPS, in what will be a big blow for the exchange.
This comes after multiple exchanges faced issues in recent weeks after e-wallet services provider Mobikwik and partners cut off services to exchanges.
The crypto industry is in a tough spot as it is in a legal grey area that allows payment partners to cut off services at will, according to executives.
CoinSwitch Kuber did not comment on the development till press time Thursday.
ET reported on April 12 that trading volumes on crypto exchanges like WazirX, ZebPay and Giottus hit a six-month low on April 10 due to the uncertainty surrounding crypto regulations in the country.
WazirX is estimated to have seen 65 - 90% of its business erode after MobiKwik disabled its services on the platform over the last few days. ET was the first to report about Mobikwik halting UPI transactions on crypto exchanges on April 9.
Crypto platforms have consistently seen trading volumes slide since April 1 when new tax rules governing crypto came into effect.
US-based Coinbase halted UPI payments within three days of the launch of its trading services in India.
One of the world's largest exchanges, which announced its India entry through a big-bang event held in Bengaluru on April 7, Coinbase had come under the scanner of the National Payments Corporation of India (NPCI), which oversees UPI, after it said it will allow users to purchase cryptocurrencies using UPI.
According to an industry source, Coinbase reached out to NPCI after it issued the statement on the same saying it “is not aware of any crypto exchange using UPI”.