How did @coinbase Support @UPI_NPCI Payment support for Indian Crypto Lovers ?

Stay tuned and will write a detailed thread today.

1. How did they do it ?
2. Which PA is Involved ?
3. What is the risk which a Coinbase India user is exposed to ?
1/n @RBI @dilipasbe @NPCI_NPCI

How did @coinbase support Payment acceptance for #Crypto in India?

Coinbase a Global leader hatched a plan by using #ShellCompanies to get Payment Methods enabled through Payment aggregators and banks such as Cashfree, BoB, IndusInd and ICICI.
@gocashfree Supported them by issuing UPI VPA created in their own name :

Cashfree had also provided them with Payout Solutions to add money apart from UPI as a method.

So Cashfree used their own account?
Questions which @RBI should ask #Cashfree :
1. What kind of verification was carried out?
2. How did a PA process transaction on its own VPA on behalf of a third party company?
3. Why did cashfree not follow @NPCI_NPCI Circular #NPCI/UPI/OC No.141/2021-22 issued on March 24th 22
4. Did Cashfree do this with an intent to breach the guidelines by hiding the Real Beneficiary?
5. If cashfree was ignorant of the real intent, then should RBI be questioning Cashfrees onboarding process ?
6. Which are the other merchants where such practise is followed by PA's?
Now lets look at what are Banks doing, who had issued UPI VPA's to Cashfree?
@ICICIBank @MyIndusIndBank issued Common Codes in the name of Cashfree and allowed them to onboard any body and any business and the bank did not even know the ultimate beneficiary of funds.
@bankofbaroda Onboarded RM Digital Marketing LP as a merchant and Coinbase used them for UPI Payments.
bobipg@barodampay used by merchant "RM Digital Marketing LP" - is it again through @cashfree
@coinbase knew what it was doing, lets understand the fund flow:
User > Coinbaseapp > Shell Company VPA > PA settles funds to Shell Company > Shell Company transfers money to Coinbase > Coinbase moves money out

Coinbase intentionally used the model and they are party to contract
Why did coinbase use such a practise of involving Shell companies?
Who are operating the Shell companies?
How will the accounting take place for money movement?
Who will protect the users incase Coinbase defaults on settlements, as the transaction was not carried on coinbase VPA
What onboarding and verification process is followed by Payment aggregators?
Why are they not worried about disclosing the ultimate beneficiary?
@RBI Should look at PA PG Licenses at the granular level
#Mobikwik supported Wallet for #CoinDCX Now disabled
Are Banks chasing Growth
Will @RBI take action against @coinbase, Banks and the PA involved?

Thank You.

@EconomicTimes How did coinbase support UPI Payments by using Shell companies. Detailed thread with proofs in tweets.
@IncomeTaxIndia should investigate coinbase and findout the reason for using shell companies for acceptance of payments and how was the money moved out ?

Moved in by shell companies.
Moved out by ???
Intent ???
AML Risk ???…

They had no choice, as inhad exposed their Shell Company Model.

Now made official statement.

Below list of Banks provide NetBanking Integration and Online Payments to All CryptoPlatform in India.

#FederalBank, #PNB and the below list.

I think all these banks are under the regulation of USA and not under @RBI 😁 Image
All the UPI VPA used by Coinbase belong to Entities, which are Proprietorship firms with websites listing them as Recharge and Utility providers but no way the website allows you to transact.

Contact numbers provided on websites does not get answered if contacted

Consumer risk?
Why should the consumer be worried ?

1. An online payment effectively is a contract between Seller and Buyer.

If you have made payment to ABC on a website belonging to XYZ and ABC is not a PA, then XYZ is not obligated to deliver any thing.

XYZ can always default & You loose.
You are ordering on Flipkart with payment made to Amzon and payment powered by an aggregator who has taken the MID on its own name as a merchant from Banks.

Look how complex the contract has become now between the seller and buyer.

Always check for DBA name before payment.
@NPCI_NPCI @dilipasbe @RBI If Kotak Mahindra Bank can support #CrytoPayments on CoinSwitchKuber, then why not other banks do it directly for @coinbase or @CoinDCX or @WazirXIndia . Policies should be fair & square.

Should approach @KotakBankLtd
And have the service. ImageImageImage
The reason why crypto companies are finding short cuts is that the policy is not clear.

Some banks are powering UPI, some dont. ( Kotak )

Some open current acounts, some dont . ( HDFC )

Some support Net Banking, some dont.

Lets have clear policy @RBI ImageImageImage
Its the policy paralysis which is forcing companies to adopt to wrong practices.

@RBI @FinMinIndia @NPCI_NPCI should come up with clear policy and let the liabilities be on the Acquiring Bank, incase of defaults or AML issues.

Its simple.
Now after seeing Kotak supporting it through their KayPay App, i wouldnt blame @coinbase for finding shortcuts, its wrong but they had no choice. So now they can relaunch by availing services from Kotak mahindra bank and KBK should allow all players and not discriminate.
@CoinSwitchKuber has also adopted the Shell company or so called Collection agency model 😀

@dilipasbe @RBI @YESBANK

Using : Paysharp as merchant on Coinswitchkuber with YesBank as acquirer. Image
Yet to test @zebpay @flitpayofficial and @Unocoin

Any other Crypto apps which i am missing 😀
Objective of my work is to either get UPI acceptance opened up for all the crypto exchanges officially or have it ahut for all.

We can not have a differential treatment from financial instituions, Risk is same no matter who powers and guidelines by regulator applies to all.
@coincrunchin follow the thread to know how cryto platforms are solving the payment acceptance problem.
@dilipasbe @NPCI_NPCI @NPCI_BHIM @HDFC_Bank Not sure to which bank the below handle belong @UPI and is used by #Cryptoplatform #bitsbns @BuyHatke

This is a next level Game. Company into commerce and receive money for Crypto. Dont even do KYC upto 10k😂 ImageImage
Buyhatke runs a Gift voucher company as front and use the accounts and UPI handle to receive money for their crypto platform #bitbns.

@RBI @NPCI_NPCI : First you should get all crypto platforms registered and issue a identifier, post that look at regulations.
KotakBank #KayPay on @CoinSwitchKuber Image
#Buyhatke and #bitbns same address, same company and incorrect practise of taking money for Crypto. ImageImage
@dilipasbe @RBI @UPI_NPCI @YESBANK

#flitpay crypto exchange using YBL UPI VPA in the name of hypto@yesbank for accepting Crypto Payments.

Not sure if Hypto is a merchant or handle selected by Flitpay crypto platform. Image
@RBI #ZebPay crypto platform. @dilipasbe
Supports crypto payments acceptance through NEFT transfers from users babk account. ImageImage
#hypto wunderbaked technologies pvt ltd : Provides APIs to Crypto platforms to accept payment using UPI. Contact them for integration.
Venture backed😀

Good news for #cryptoplatforms. Plz find below list of Banks or Fintechs who provide Payment acceptance for cryptos through Current Account or UPI or Payout Solutions
1. Kotak: kaypay current account
3. Icici, indus, yes bank : UPI through PA

4. Payouts through Cashfree.
5. Net Banking : 16 Banks.
6. PAs : Atom Deposit, Mobikwik Wallet, Cashfree, Hypto and there are many agents who support in acting as collection agents.

Surveyed: #coinbase, #zebpay, #bitbns, #coinswitch, #coinDCX, #flitpay #unocoin, #wazir
Few might have disabled in the last 24 hours, but i have attached screen impages in the entire thread, which itself is a proof that they had integrations live.
BuyUCoin also had support of Paysharp @YESBANK Image
@IDFCFIRSTBank support current account and also NetBanking for Crypto Payments. Plz reach out IDFC for CA. Image
#bitbns has second app for crypto, just incase if first one gets blocked.

CA with HDFC Bank @HDFC_Bank
UPI with @ibl details attached @dilipasbe @RBI ImageImageImage
What was going in the minds of leadership team at Mobikwik

BuyUCoin : website claims to provide Credit and Debit PG + Wallet + UPI

@RBI @dilipasbe ImageImageImage
Wunderbaked technologies pvt ltd ( company provides Bene Validation Service APIs to majority of the crypto platforms apart from Cashfree which used to dominate the market for Payout solutions

@YESBANK and @ICICIBank will get Baked or Freed some day
Cashfree supports "Quicko infosoft Pvt Ltd. Which runs one of the Crypto platforms.
#Pillow 😄 Image
#flintmoney 😂😂 Image
Ending the thread with the below article. Let me tell you the amount which consumers lost was upwards of INR 250 Crores and not INR 150 Crores.

You might have just lost 100 or a 1000...collectively people lost INR 250 Crores.…
@flitpayofficial has got backing of @YESBANK powered #VAN Solution.

#VAN solution, is where psuedo accounts are created to receive money using IMPS/NEFT.

So delighted to see that @RBI has allowed Banks to have Current Accounts and layer them with a VAN on top of it for Crypto.

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More from @OperatorMama

Mar 1, 2020
@ripul Yah...foreign nationals with residential permits + University admission letter + copy of their passports can open accounts in India.
@ripul When foreign nationals visit India for Education or Job assignments on a long term basis, they need to get registered with the commissioners office and seek residential permission. Against that they can always open bank accounts. Upon return, they need to close the a/c.
@ripul KYC documents
The foreign national is required to furnish copies of the following documents to open the bank account:
Valid foreign passport.
Valid Indian visa ( it should be a longterm visa: valid for more than 182 days).
Copy of Foreigners Registration Office (FRO) permit.
Read 6 tweets

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