An Indian cryptocurrency exchange and a policy firm have separately appealed to the government to restore access to the national Unified Payments Interface (UPI) for crypto firms after it was apparently suspended in 2022. Although the proposals were not coordinated, they represent a significant effort by India’s crypto stakeholders to advocate for policy changes for the industry, which has faced obstacles such as taxes and a “crypto winter.”
The Indian government and central bank have reportedly received proposals to reinstate UPI access for the crypto industry, which was indirectly suspended by the National Payments Corporation of India (NPCI) after the government imposed a 30% tax on digital assets. However, the recent establishment of the Bharat Web3 Association (BWA) has provided hope for the industry, with the committee proposing two proposals seeking favorable policies and regulations for the industry. The BWA is expected to soon unveil a third proposal.
The disruption in the UPI system occurred after Coinbase launched operations in India, and the NPCI clarified on Twitter that they had no knowledge of any crypto exchanges using UPI. The decision on whether to restore UPI access to crypto exchanges remains uncertain but could have significant implications for the industry in India.