Regulatory Trouble Ahead? India's Central Bank Distances Itself From Coinbase's UPI Plans

As cryptocurrency exchange Coinbase Global Inc. COIN forayed into India and said it was working on getting UPI on its platform for all users — the National Payments Corporation of India, a subdivision of the country's central bank, sought to disassociate itself with the move.

Coinbase on Thursday launched its service to allow for the trading of cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD, and Dogecoin DOGE/USD, in India at an event in Bengaluru. It said it rolled out UPI payments for some of its users with a "Join UPI waitlist" on its platform and said that it is working to broaden its product offerings in the country. The company executive had further added that the users in India would be able to top money to and withdraw from their wallets using the UPI network.

Meanwhile, NPCI, the governing body that oversees UPI in India — post the launch — said, "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."

A Coinbase spokesperson reportedly told the media, "We are aware of the recent statement published by NPCI regarding the use of UPI by cryptocurrency exchanges. We are committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms."