Coinbase suspends buy orders in India days after launch

After launching its trading service in the world's second largest internet market, the eponymous exchange is now non-functional for purchase orders less than four days after suspension of support for UPI payments instrument on its app in India.

The UPI payment method is unavailable in India and the app urges users to try another method, but it doesn't support any other method. It continues to support theImmediate Payment Service.

The National Payments Corporation of India, the governing body that oversees UPI in the country, made a strange statement hours after the launch of Coinbase in India that it was not aware of any exchange using UPI payments. UPI payments were being tested in India several weeks ago.

The first Thursday event at the company featured an executive talking about UPI payments in India. The credits are from the company, Coinbase.

In a statement later that day, Coinbase said it was committed to working with the relevant authorities and was experimenting with other payment methods. The company didn't reply to the question.

The statement from the payments body, a special division of India's central bank, explained why other exchanges in India have had trouble supporting UPI, the most popular way Indians transact online.

The Reserve Bank of India continues to maintain that virtual digital assets need more scrutiny, despite the fact that it is not illegal in the South Asian market. The Supreme Court of India overturned the Reserve Bank of India's ban oncryptocurrencies over two years ago, but banks continue to side with the central bank.

At a time when India has a new rule on taxation ofCryptocurrencies at 30%, there was a fight. The financial institutions in India are still playing hard to get, despite the fact that India is appearing to give legitimacy to cryptocurrencies.

In India, where it employs about 300 people and is an active investor in many local startups, it was important for Coinbase to arrive earlier this week.

Brian Armstrong, co-founder and chief executive of Coinbase, said earlier this week that the firm was making a long-term bet on India and would more than triple its headcount in the country to 1,000 this year.

FTX has begun to expand its presence in India. A source familiar with the matter says that the firm's venture arm is engaging with a few startup in the country. The Indian fantasy sports startup MPL is in talks with it.