Popular Indian cryptocurrency exchange Zebpay revealed that it may cease support for rupee withdrawals due to a directive dispensed by the Reserve Bank of India that forbids banks from assisting crypto business.
RBI Directive Confronted by Indian Crypto Industry
Zebpay recently announced that the Indian crypto market has challenged the directive through the Indian Supreme Court. Zebpay and other exchanges in the country consider the circular overbearing and constricting to the country’s crypto system.
However, the Supreme Court said it would not stop the RBI directive. Taking into account the current situation, the termination of rupee withdrawals from crypto exchanges seems to be just around the corner.
RBI’s decision directly suppresses the development of the crypto sector in the country. The Indian government also enforced a Goods and Services Tax on crypto trading and mining. The government’s general stance on digital assets seems to be against the crypto trading market in the country.
Zebpay Recommends Customers to Withdraw INR Holdings
Zebpay vowed to assist user requests for rupee withdrawals to the best of their ability, mentioning that traders will only be allowed to withdraw in INR if the banks support such transactions. Should a trader opt to take out money in rupees, all the unexecuted trading orders have to be annulled before requesting the withdrawal.
Considering the directive’s impending date, the exchange encourages its customers that want to make withdrawals in INR to do them as soon as they can. Their website displays a warning statement for its users:
“As per a recent RBI action, banks have been told to discontinue banking services to those dealing with virtual currencies. While our industry is challenging this legally, the outcome is beyond our control. Hence, if you are holding any rupees, or depositing any rupees in Zebpay, there could soon come a time when we may not be able to honor withdrawal requests. Please continue only if you understand this risk.”
As well as informing customers of the directive and its implications, Zebpay specified that they cannot be accountable for any losses that happen as a consequence of the directive. The company continued in their announcement:
“Also, in case of disruption of banking services to Zebpay, you hereby indemnify Zebpay, and agree to hold Zebpay free and harmless at all times, against all claims, proceedings, expenses, costs, actions in the event of any prejudice and/or loss being caused to you by any act or omission by Zebpay or any other party, in regard to your rupee balance, transactions, trading, deposit, or withdrawal.”
Cryptocurrency Trading Is Still Available On Zebpay
Even though when the directive will be implemented the fiat withdrawal will be terminated on the platform, the exchange will continue with its trading operations. New users will be allowed to make accounts, and the exchange will continue supporting crypto-to-crypto trading. The company also said, “…our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut,” still they admit that there are too many reservations for them to assure such trading.