In a Tuesday earnings call, Coinbase CEO Brian Armstrong admitted that the exchange stopped India's unified payments interface (UPI) due to "informal pressure" from the RBI. 

Armstrong's remarks came a month after Coinbase's India services were banned three days after launch. 

Coinbase stated on April 7 that it was working with India's bank regulators and payment partners at an event in Bengaluru. "Concerning the recent media stories around the purchase of Cryptocurrencies using UPI, NPCI would like to clarify that we are not aware of any crypto exchange using UPI," the National Payments Corporation of India (NPCI) said a statement released the same night.

https://twitter.com/thinkmoonio/status/1524292584004370432

&nbsp;

The global crypto exchange had to cease UPI transactions on its app just three days after announcing its launch in India.
<blockquote>Despite the Supreme Court's decision in 2020 to overturn the central bank's crypto banking ban, there are "elements in the government there, especially at the Reserve Bank of India (RBI)," according to Armstrong.

He continued, "They're using subtle pressure behind the scenes to block some of these payments that may be happening over UPI."</blockquote>
Due to the RBI's "shadow ban" on the cryptocurrency business, Indian exchanges have experienced issues accessing banking and payment systems.

Armstrong claims the RBI violates a Supreme Court order from 2020.

Armstrong stated that Coinbase prefers to work with the regulator to relaunch despite the criticism.

Brian Armstrong had previously questioned the RBI and the NPCI's informal limits on crypto trading, claiming they violated the Supreme Court judgment.

Several banks have disabled UPI for crypto-related payments due to this occurrence. ICICI Bank and Paytm's Payments Bank, for example, cut ties with cryptocurrency exchanges in 2021.

The global crypto exchange is now preparing to reopen in India using other payment gateways.

Coinbase's India Services Suspended Amid 'Informal Pressure' From the RBI, Armstrong

Coinbase CEO Brian Armstrong admitted that the exchange stopped India's unified payments interface (UPI) due to "informal pressure" from the RBI. 

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Coinbase's India Services Suspended Amid 'Informal Pressure' From the RBI, Armstrong

Top Picks