Disabling of Cryptocurrency Purchases in India

BANKING AND ECONOMY

  • A Cryptocurrency exchange operator - CoinSwitch Kuber - disabled all modes of payments for crypto purchases on its application.
  • The operator has disabled the purchasing of cryptocurrencies by using Indian Rupee (INR) deposits through UPI as well as other modes including bank transfers through NEFT, RTGS, IMPS etc.
  • This step was initiated, as the Union Government decided to impose a 30% tax on gains from cryptocurrencies, which was effective since April 2022.
  • The tax was imposed with the objective to control the unregulated cryptocurrency exchanges in the country.
  • Recently, another operator ‘Coinbase’ had disabled the purchasing of cryptocurrencies in India through Unified Payments Interface (UPI).

Facts to know:

 

  • UPI based applications - PhonePe, Paytm, Google Pay and NPCI’s BHIM app.
  • NEFT - National Electronic Funds Transfer.
  • RTGS - Real-Time Gross Settlements.
  • IMPS - Immediate Payment Service.
CoinSwitch Kuber
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