India’s cryptocurrency industry is mobilizing for reform as a wave of proposals seeks to restore access to the immensely popular Unified Payments Interface (UPI) for crypto-related transactions.
According to insiders, the Indian government and central bank have been inundated with these proposals, while the newly established crypto policy advocacy group, the Bharat Web3 Association (BWA), is gearing up to submit its comprehensive proposal in the upcoming weeks.
The crypto community is determined to forge a path toward change, sparking a renewed sense of optimism and anticipation for a breakthrough in UPI’s integration with the burgeoning crypto ecosystem.
The Indian crypto sector has been through a rough patch, facing numerous challenges such as heavy taxes, a prolonged crypto winter, and a banking access ban that cast shadows on exchanges. As a result, a significant move has now been initiated.
Public policy advisory firm Black Dot has shared another proposal with various authorities, including NPCI, RBI, and the Standing Committee on Finance chairperson. The proposal emphasizes the user-friendly experience of UPI, promoting onshore transactions and offering a traceable trail for regulators and law enforcement.
According to the Economic Times, around 80% of digital asset transactions have shifted to peer-to-peer channels since UPI access was limited. The proposal argues that denying a specific group of investors access to their preferred instruments via UPI potentially violates the principle of equality before the law.
While it remains uncertain whether authorities will restore UPI access to crypto exchanges, doing so would undoubtedly boost the credibility of the crypto space and enable seamless trading for retailers.
The ongoing discussions have captured the attention of industry participants and observers, leaving the future relationship between UPI and cryptocurrencies in India hanging in the balance.
