Zepay, the largest crypto exchange by trading volume in India, has announced the closure of all its exchange services, effective from Friday 4 PM. The company’s decision comes in the wake of the Reserve Bank of India (RBI) crackdown on the purchase and trading of cryptocurrencies in the country.
“The curb on bank accounts has crippled our, and our customers’, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business,” Zepay said in a blog post. “As a result, we are stopping our exchange activities.”
The cryptocurrency exchange, however, said that its Zepay wallet will continue to function even after the exchange closes. All pending transactions will be cancelled and any remaining amount will be credited back to users’ wallets.
“At 4 p.m. today (28 September 2018), we will cancel all unexecuted crypto-to-crypto orders and credit your coins/tokens back to your Zepay wallet. No new orders will be accepted until further notice… You are free to deposit and withdraw coins/tokens into your wallet,” the cryptocurrency exchange said in a blog post.
On the 5th of April this year, Reserve Bank of India (RBI) announced that all banks must sever ties with the entities that deal with cryptocurrencies in the next three months. In addition to this, the financial institutions have been warned not to forge any new deal with an institution dealing in digital currencies.
The War Dates Back To 2013
India is one of the countries that have been quite harsh on their cryptocurrency regulatory stances. It has been taking ever-increasing actions to clamp down on all things cryptocurrency. The fight between the country’s central bank and cryptocurrency traders dates back as early as to 2013, when RBI first issued an official announcement to cryptocurrency users, warning them about typical risks involved – ties to illicit activities, security, and volatility.
Zepay, which was launched in 2015, is arguably the largest entities in the cryptocurrency industry in India. According to the company, Zepay has over 3 million users across its mobile apps. The crypto exchange platform also supports 20 cryptocurrencies and 22 trading pairs.