By Nathan Ferguson
Noteworthy banks from India have requested the N PCI (National Payments Corporation of India) to chalk out an official directive encompassing the purchasing as well as trading of VDAs (virtual digital assets). As reported by The Economic Times, the UPI (Unified Payment Interface) for rapid payment method has been blocked by the banks on the verbal instructions of the NPCI.
Nonetheless, the paper asserts that at present banks have voiced the problem before the regulatory authority. UPI permits the holders of bank accounts to receive and send funds right from smartphones with no requirement to enter the information of the bank accounts, the banking consumer’s ID, or the password. Nevertheless, an official order given by the NPCI appears to be improbable in the upcoming days. An executive from the NPCI stated that no circular is intended by the venue.
India requires crypto regulation
Bankers mention that the reluctance could result in some legal complications. If an official circular is witnessed to prohibit UPI for Virtual Digital Assets or cryptos, the industry of cryptocurrency would likely contest legally, as had been done by them when a prohibition was imposed on the behalf of RBI in 2018’s April, as revealed by a banker. The respective bank was eliminated in 2020, paving the way toward a rush for crypto gold.
A source disclosed that they did not thoroughly comprehend the decision taken by NPCI. Although it indirectly prohibited UPI (in terms of crypto trades), nothing was noted by it over the Immediate Payment Services. The respective point was additionally spoken on the behalf of some other party. In the meantime, Mobikwik (a provider of e-wallet services) has additionally stopped its services regarding crypto venues.
India undergoes brain drain
Deficiency in regulatory clarity has additionally provided a way for a couple of co-founders of WazirX (a crypto exchange) to shift to the Middle East. This is witnessed a couple of years after the movement of Polygon’s CEO Sandeep Nailwal to Dubai, referring to the legislative hindrances posed to the development of Web3 across India.
In the latest discussion conducted on the behalf of FE.com, WazirX’s vice president – Rajagopal Menon – expressed that there is an increasing demand for crypto in line with the regulations as people intend to invest, nevertheless they cannot do it due to the deficiency in regulations. He added that for Indian crypto exchanges, there are conservative policies, and the founders intend to experiment with their freedom.