Indian crypto investors are panicking following crypto exchanges that deactivate deposits

According to reports, 2 major Indian cryptocurrency exchanges have halted deposits using a popular payment method, prompting concern in a country where, despite Bitcoin's great popularity, regulatory clarity is still absent.

News reports that Indian crypto exchanges WazirX and CoinSwitch Kuber have disabled rupee deposits for the purpose of purchasing cryptocurrency using the United Payment Interface (UPI).

In India, UPI is a widely utilized real-time payment system governed by the central bank. In the previous fiscal year, the total value of UPI transactions exceeded $1 trillion.

Concerned consumers can continue to withdraw funds through the interface, according to the two exchanges.

In a tweet, Coinswitch Kuber said,

“UPI deposit is currently disabled for all users, however we are striving to restore it as soon as possible. Please be patient.”

Fears of Financial Instability

Despite the fact that India, the world's second-most populous country, has spent years developing legislation regulating cryptocurrencies, with a measure endorsed by the central bank due to concerns about financial stability risks, authorities have recently decided to tax cryptocurrency income, indicating their approval.

According to CoinMarketCap, the top 3 Indian crypto exchanges conducted $140 million worth of trading in the last 24 hours.

Last Monday, the National Payments Corporation of India, the operator of the government-backed UPI system that facilitates bank transfers, issued a one-line statement claiming that it had no knowledge of its use by any cryptocurrency exchange.