A cryptocurrency advocacy group in India, the Bharat Web3 Association (BWA), is set to submit a proposal to the Indian government and the Reserve Bank of India regarding access to the country’s Unified Payments Interface (UPI) for crypto exchanges. This move comes after two other proposals were made, and the supervising body for the interbank payments network claimed that it was not aware of cryptocurrency exchanges utilizing the UPI service. The UPI is a widely used real-time interbank payment system in India for facilitating peer-to-peer (P2P) and peer-to-merchant (P2M) transactions. Despite the unfavorable regulatory policies that continue to afflict the industry, cryptocurrency adoption in India continues to grow, with a recent report projecting that there could be over 156 million crypto users in the country by the end of 2023.
Crypto exchanges still struggle with the country’s high taxes on digital asset transfers and the 1% transaction tax deduction at source (TDS). BWA had previously submitted recommendations to India’s Finance Ministry seeking relief from the unfavorable crypto taxation policy, but the situation remains unchanged. Despite this, the BWA proposal and the UPI’s extensive use in the country provide hope for more liberal regulatory measures to boost the cryptocurrency industry in India.