The change is expected to substantially impact CoinSwitch trading, which had 14 million users in 2021.
CoinSwitch Kuber, a cryptocurrency exchange, has prohibited all forms of payment for crypto purchases, including bank transfers, causing outrage among the platform’s customers. This comes just two days after Coinbase had to disable UPI, its sole cryptocurrency purchase option.
The change is expected to substantially impact CoinSwitch trading, which had 14 million users in 2021. UPI payments and bank transfers have also been disabled on the app, leaving users with no method to buy cryptocurrency.
This infuriated Twitter, which erupted in a rage.
“Coinswitch should never be used to invest in cryptocurrency.” For the past 1-2 months, I’ve had problems with deposits and withdrawals. “I reached out to support for assistance, but as usual, they said “they’re working on the issue,” and the tale continued,” a user tweeted.
They had millions of dollars in the bank, but none of them knew how to invest them wisely. “There are some things that money can’t buy,” as the saying goes. Two of them: are wisdom and experience. “In India, from Coinswitch Kuber to WazirX to Coinbase, all of which have recently been in the spotlight for the wrong reasons.”
“These startups felt that with all their blitzkrieg marketing and onboarding the next 100 million people, they could change things in such a loud setup about being anti-crypto,” another tweeted.
CoinSwitch’s support handle responded to a user who requested a quick withdrawal process:
“In terms of cryptocurrency withdrawals, we’re still working with authorities and legislators to develop legislation.” The CoinSwitch platform’s crypto withdrawal/deposit functions will stay disabled until more clarity is obtained. While we recognize the inconvenience, we feel it is merely a minor stumbling block in our efforts to regulate cryptocurrency in India.”
The government announced a 30% tax on cryptocurrency earnings, which took effect on April 1. Since then, payment options on crypto platforms have been steadily declining.
Since the tax was enacted, there has been a significant drop in crypto trading, which is projected to continue when a 1% TDS (tax deduction at source) becomes effective on all crypto transactions on July 1.