India's Crypto Advocacy Group Pushes For Exchanges To Regain UPI Access
The Indian government has taken an ambivalent stance regarding the bitcoin market. They first levied a 30% tax on digital assets before making life even more difficult for crypto aficionados. The Unified Payments Interface (UPI) was indirectly halted by the National Payments Corporation of India (NPCI). The restoration of UPI access for cryptocurrency exchanges is being pushed for by an Indian advocacy group for cryptocurrency. The industry is undoubtedly given new life by this.
It has recently come to light that recommendations urging the reinstatement of UPI access for cryptocurrency exchanges have been sent to the Indian government and central bank. These suggestions emphasize the significance of enabling secure and controlled transactions between cryptocurrency exchanges and banking channels.
India created the Bharat Web3 Association [BWA] in November 2022. This advocacy group is in charge of regulating the cryptocurrency and Web3 industries. The BWA has offered the government two ideas. In the future weeks, a third proposal is scheduled to be submitted.
How well-known in India is UPI?
Digitalization gained attention after the COVID-19 epidemic, and UPI became a well-known form of payment in India at this time. The payment system conducted an astounding 83 billion transactions for the fiscal year 2022–2023, according to data from the NPCI. $1.85 trillion was the total value of these exchanges. UPI facilitated 8.7 billion transactions totaling $187 billion in only the month of March.
These numbers also demonstrate the important part UPI plays in the Indian payment ecosystem. It should be highlighted that it is becoming increasingly popular as a means of conducting digital transactions.
Furthermore, Coinbase's debut into India was the catalyst for the "shadow ban" on cryptocurrency exchanges using UPI. The NPCI stated in a tweet from April 2022 that it was "not aware of any crypto exchange using UPI." Even the Brian Armstrong-led discussion was moved away as a result of this. However, it is feasible that other exchanges may think about entering the Indian market in light of the recent efforts to restore UPI access for cryptocurrency exchanges and the revived interest in incorporating UPI into the crypto ecosystem.