CoinSwitch abruptly disables all payment channels amidst crypto carnage

Sahana Kiran
Source – Unsplash

The Indian government prolonged its vengeance against the crypto market by imposing a hefty tax of 30 percent on all profits. Just as Indian crypto bugs were getting used to this law, another bomb was dropped on the market. CoinSwitch Kuber, a prominent crypto exchange in the country abruptly disabled all payment channels.

The consumers of the CoinSwitch Kuber application were unable to carry out deposits of the Indian Rupee or INR on the app.

Unified Payment Interface [UPI] was a common topic of interest in the crypto market over the last couple of days. The NPCI recently issued a notice clarifying that it isn’t aware of any digital asset exchange employing UPI. As a result, the community expected exchanges to disable support for UPI-related transactions. However, CoinSwitch seems to have suspended all modes of payments, including bank transfers via NEFT, RTGS, IMPS, and others.

Furthermore, it was also noted that the exchange hadn’t released a statement regarding this abrupt suspension. However, the support account of CoinSwitch revealed that they were working with regulators in the country to garner clarity. The exchange tweeted,

“For crypto withdrawals, we are still engaging with regulators and policymakers in bringing regulations. Until some clarity is achieved, the crypto withdrawal/deposit functions will remain disabled on the CoinSwitch platform. While we understand it’s an inconvenience, we believe that it’s only a minor bump in our way to regulate crypto in India.”

Is crypto still dependent on fiat?

Seems like it. Indian investors have been left in shackles as all modes of payment were muted. This pointed out how the government as well as fiat had a major role in the fate of crypto.

Additionally, the cryptocurrency industry made its debut to free individuals from centralized systems. While other nations were slowly embracing it, India wanted to reap the benefits of its citizens’ sow. The latest news emphasized India’s control over the crypto market.

Thanks to the revised crypto tax law, the trading volume in the country has already down by 72 percent since the beginning of this month.

CoinSwitch’s latest move would further ignite fear among consumers. As a result, a potential decline of the industry is speculated to be on its way.

Watcher. Guru reached out to CoinSwitch Kuber for a comment but did not garner a response during press time. The article will be updated following a response.