Zebpay, one of the largest cryptocurrency exchanges in India, closes its exchange activities due to the crypto banking restriction imposed by the Reserve Bank of India. Zebpay wrote in a statement that “At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”
Zebpay officially announced on Friday the shutdown of its popular crypto exchange in India which has almost three million users as of now according to its website.
Further speaking to the matter, exchange commented in its statement that “Despite regulatory and banking problems along our journey, we continued to look for solutions as we did not want India to miss the bus of digital assets that power the public blockchain.”
With this, Zebpay admitted further saying that “The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business. As a result, we are stopping our exchange activities.”
Amid this, the exchange is discharging all unexecuted crypto-to-crypto orders on Sept. 28 at 4 pm (Indian time). On the closure transaction front, customers’ cryptocurrencies will be credited to their Zebpay wallets. And “No new orders will be accepted until further notice,” as elaborated by the exchange. The exchange further stated that “Zebpay wallet will continue to work even after the exchange stops. You are free to deposit and withdraw coins/tokens into your wallet.”
With this, the country’s central bank – Reserve Bank of India (RBI) issued a circular on April 6 restricting banks and financial institutions under its control from offering any services to crypto businesses. The restriction went into effect in July 2018.
Soon after the RBI issued its circular, Zebpay introduced its crypto-to-crypto trading platform. In August 2018, the exchange further added tureusd trading.
Needless to say that the banking problem has been affecting Zebpay’s business. With this, on Sept. 4, the exchange officially introduced that it will return all users’ Indian rupees on deposit secured at the exchange. It further elaborated saying that “We have been distressed at the raw deal crypto-traders are getting in India as a result of the banking problems.”
Besides this, Unocoin, another major Indian exchange, it profusely commented that “India’s biggest crypto population is not ready for the crypto-to-crypto trading,”
In the meantime, there are a number of smaller exchanges have introduced their exchange-escrowed peer-to-peer (P2P) trading activities which they claim to have gained instant adoption since the RBI’s ban. Amid this, the central bank has identified the growth of P2P trading in the country. In its annual report, the RBI commented that “some trading may shift from exchanges to peer-to-peer mode, which may also involve increased use of cash.”
There are a number of petitions have been filed against the RBI’s restriction and the supreme court has been striving to hear the case since Sept. 11. However, the case has been delayed supposedly!!