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An appeal has been made by an Indian cryptocurrency exchange and a policy firm separately to the government, urging the restoration of access to the national Unified Payments Interface (UPI) for crypto firms. This access was apparently suspended in 2022. Although the proposals were not coordinated, they demonstrate a concerted effort by India's crypto stakeholders to advocate for policy changes in an industry that has faced obstacles such as taxes and a downturn in activity known as a "crypto winter."
Reports suggest that the Indian government and central bank have received proposals to reinstate UPI access for the crypto industry, which was indirectly suspended by the National Payments Corporation of India (NPCI) following the government's imposition of a 30% tax on digital assets. However, the recent establishment of the Bharat Web3 Association (BWA) has provided a glimmer of hope for the industry. The BWA has put forward two proposals aiming to secure favorable policies and regulations for the crypto industry, and they are expected to unveil a third proposal soon.
The disruption in the UPI system occurred after Coinbase commenced operations in India. In response, the NPCI clarified via Twitter that they had no knowledge of any crypto exchanges using UPI. The decision regarding whether to restore UPI access to crypto exchanges remains uncertain, but it carries significant implications for the crypto industry in India.
