The Indian cryptocurrency exchange Zebpay suspended INR deposit and withdrawal on 4th July, shortly before the new regulatory framework proposed by the Reserve Bank was applied.
According to a cautioning announcement, Zebpay revealed that the company’s activities were “beyond its control“. The Indian cryptocurrency exchange has previously notified users that there may be difficulties in depositing and withdrawing fiat funds due to the future implications of the Reserve Bank of India (RBI).
“Our industry has approached the Supreme Court of India to challenge the circular, as we feel it is counterproductive, and against the interest of citizens. As a responsible corporation, we regard customer-protection and market-integrity as our primary objectives. In light of that, please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible,” wrote Zebpay on 6 April (updated on 21st June).
Zebpay continued saying that this change could affect a lot crypto trading and especially price volatility. “This is something you should keep in mind if you choose to hold rupees in your Zebpay account.”
INR deposits and withdrawals are unavailable
On July 3, India’s Supreme Court approved the ban deadline on distinct crypto-related services, refusing to give companies time to organize the latest details and allow users to withdraw funds before it is impossible.
The decision taken by the Supreme Court means that 5 July remains set as the day when the law comes into force.
Here’s the updated statement posted on 4th July:
INR deposits and withdrawals have been paused in the Zebpay app until banks allow us again. But please note:
(i) Coin / Token deposits and withdrawals are ON
(ii) crypto-rupee and crypto-crypto pair trading is ON“.
Companies had time
Bearing in mind that the Indian Supreme Court has announced its intention to ban crypto companies providing fiat support since April 2018, several businesses have considered and sought solutions. For example, WazirX has announced that it will make some changes within the company’s operating system and change into a P2P platform so that to eliminate the pair crypto-fiat currency.
“If banking is something the exchanges are not allowed to do, then the solution is something that direct banking doesn’t come in,” CEO Nischal Shetty told Economic Times.
Zebpay is Indian’s leading Bitcoin (BTC) and altcoin exchange. According to CoinMarketCap, the platform has a 24-hour traded volume of $5,095,498 and is ranked 77th globally.