The Crypto exchanges in India were mailed up for a meeting with NPCI. Their demand is to restore the UPI services for crypto traders to increase the rate of crypto adoption.
Leading crypto exchanges like WazirX, CoinSwitch Kuber, CoinDCX and other participants of BACC (Blockchain and Crypto Assets Council) have written their concerns about restoring UPI in crypto trading.
Significance of the Scenario
Crypto is one of the most popular digital currencies in the digital wave around the world. Different countries and digital platforms are already starting to adapt the whole currency and exchange procedures.
Indian citizens and small-medium investors have already shown huge interest in this case. Though, the whole crypto exchange procedure requires core knowledge of blockchain technology, fungible currency concepts, digital currency exchange systems, digital crypto exchange regulations, etc.
In that case, the whole scenario of restoring UPI services will not only improve the modern adaptation of the crypto exchange in India but also will improve the cash flow and currency growth within the country.
Recently, NCPI, or National Payments Corporation in India, has declined the UPI service integration with crypto exchanges. The exchange platforms were accepting UPI payments before the incident. Right now, the facility is closed and they are not even accepting deposit features with UPI or Unified Payment Interface.
Statement by NPCI as on 7th April 2022. With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI. Please see attached document pic.twitter.com/lGTcaSLKeC
— NPCI (@NPCI_NPCI) April 7, 2022
Because of this, the payment options are now limited in the case of domestic and international exchange as well. It includes credit card payment, PayPal, etc. It has become difficult for normal citizens, to invest and maintain the flow of currency through crypto. Though all the organizations are still trying to restore UPI through legal actions and formal applications on a regular basis.
Crypto adoption must be implemented in different economic bodies and administrations. It diversifies the cash flow and economic structure of any country or economic body. This can also improve financial growth and international transactions. Moreover, different platforms or marketplaces are also accepting cryptocurrency as their exchanging media, such as NFT or non-fungible tokens.
The whole adaptation and new crypto wave will increase the annual international exchange in the country. Moreover, currency diversification will increase new and young investors. The Government is responsible for building an appropriate and most effective administrative body, that can regulate, operate and control the whole cryptocurrency exchange actively.