CoinSwitch Kuber disabled all Crypto buying options on its App today along with deposits in INR, according to a news report by ET.
CoinSwitch is one of the leading crypto trading platform in India with a user base of more than 15 million Indians. The move has not only hampered the trading activities of the users but has also resulted in the decline of trade volume on the platform.
It seems that government in India has set some kind of cat among crypto pigeons by announcement of tax measures on crypto transactions. There appears to be an eerie silence in crypto atmosphere of India indicating something big is imminent.
A few days ago, Coinbase had launched its Crypto Exchange operations in India with much fanfare. Just after Coinbase debut trading venture almost collapsed in India at its very onset due to withdrawal of support from UPI for payments.
CoinSwitch Kuber has also suspended all modes of payments in use. Now the users are not able to add any fund to their crypto wallets which implies that all purchases of digital currency and assets have been put to hold.
Additionally, users are not even allowed to make payments via bank transfers options like NEFT, RTGS or IMPS. Even cash deposits in INR are also rejected for the time being.
This step has eventually landed CoinSwitch Kuber in a difficult situation as no transaction can materialize in this scenario.
In a recent build-up of events when National Payments Corporation of India (NCPI) commented that it is not aware about crypto exchanges using UPI, CoinSwitch Kuber was allowing its users to make payments through UPI Apps. Now that has been discontinued.
As per another report, Coinbase and CoinSwitch Kuber are not the only ones who have detached their operations from UPI platform but CoinDCX and WazirX have also disabled UPI as payment medium from their online platform.
The users are definitely confused and demanding a clarification about the matter. The crypto markets in India are facing ordeals since the beginning of this financial year. First the market volume saw a downfall due to strict tax regime and now the withdrawal of payment modes has brought the crypto economy to a standstill. Although both the moves by the government and its agencies may be in the larger interest of investors in this unregulated sector.
Government in India, seems to have woken to Cypto craze in India. A rising number of people from India are investing their money in Cryptocurrencies. Government has started taking measures to discourage people in India from investing their money in any kind of private currencies.
Recently, a 30% Income Tax was announced on any capital gains made from digital assets. Cryptocurrencies are categorized as digital assets. Besides a 30% Income Tax, cess and other charges are also applied to any gains made from crypto assets. 1% TDS (Tax Deducted at Source) has also been made mandatory for any transaction made for purchase or sale of Rs. 10000 or above worth of these Crypto assets.
Another harsh measure taken by the Government in India is that while computing income tax on gains made from cryptocurrencies, any adjustment of gain with loss in other cryptocurrencies has been prohibited.
