India is one of the countries where we always see some sort of news and updates related to cryptocurrencies. Sometimes it is about the regulation and even if it is not that then also we get to know some updates related to how they are planning to take it forward. Even though crypto is in a neutral state in the country the government is not providing A favorable atmosphere to the crypto companies in the country. As a result, the crypto exchanges are struggling with their operations as they are not getting banking support which is why it is difficult for them to process bank transfers and instant withdrawals.
Now there is an update coming up related to payment restoration. As per the latest update, it is expected that the government is going to restore UPI payment for the crypto exchanges as they have got a lot of proposals to enable it. This will help a lot of buyers in the country because this payment method will allow many people to transact with ease as well as it will also enable the exchanges to process instant transfers. Currently due to banking support lack most of the exchanges are unable to provide instant deposits and withdrawals however after this it is expected that the situation will improve.
India's government and central bank have received proposals asking to restore access to the Unified Payments Interface (UPI), a widely popular real-time payment system, to the crypto industry. Two proposals have already been made. A third proposal will be made "in the coming few weeks" by India's newly formed crypto policy advocacy group, the Bharat Web3 Association (BWA)
Since the Indian exchanges are not able to provide instant withdrawal hence the majority of users are availing of peer-to-peer services but there is also a problem. Recently we have seen a lot of news related to P2P scams on various exchanges which is also not good because this is where people struggle to wait for funds received and their accounts get blocked. Most of Indian and even international exchanges provide the option to avail of peer-to-peer services ironed they have to build a nice platform for the same however it is not easy for them to control it completely. Some scammers are taking advantage of the situation and this is what creates a lot of issues for the users to trade in crypto. While some tokens are sold at a premium price but it's still there is always a risk to get stuck in unfair transactions if a verified merchant is not selected.
Once the UPI payment service is enabled for the exchanges then the situation is expected to improve because users will not go for peer-to-peer. If the Indian exchanges would be able to provide the required services then it is obvious that the users will prefer it as they can rely on the exchanges where the possibility of a scam is not there which is the biggest problem of peer to peer mechanism. The good thing about the UPI payment service is that users are not required to provide complete bank details and even with the virtual payment address or with the mobile number they can accept the payment. The transaction gets settled in real-time so there is no need to wait for a long time however there is a certain limit but this limit is also good enough that caters to the majority of users dealing in the market. Currently, this limit is 200 K INR in a day which I think is good enough for a big chunk of users dealing in the crypto market.
The current market situation is in bear sentiment but this is also a good time to increase the holding. I have gone through one of the exchanges that I use in India and I was surprised to see that the volume is quite good there. I did not expect this type of volume I can see in the Indian exchange but now since it is there so I believe it is a good sign and with certain initiatives, this can be made even better for the Indian crypto community.
The UPI restriction was started post coin base implementation in April 2022 and it's been a year since when the exchanges are struggling to get it back. If the government consider the proposal and approved the restoration of UPI payment services then it is going to be a nice move that can help the users as well as the exchanges to provide better services and user should also be happy.
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