Zebpay Indian Crypto Exchange Announces Closure As It Finds No Banking Solution To Serve Customers
Zebpay, a major Indian cryptocurrency exchange, is closing its doors following the country's recent cryptocurrency ban, citing extremely difficult banking conditions to provide services.
Zebpay, a major Indian cryptocurrency exchange, is closing its doors following the country’s recent cryptocurrency ban, citing extremely difficult banking conditions to provide services.
India’s central bank ban affecting cryptocurrency exchanges
Zebpay, one of the largest cryptocurrency exchanges in India, has announced September 28, that it will discontinue its services as a direct result of the order issued by the Reserve Bank of India barring banks from carrying out transactions with crypto exchanges.
In a blog post, the developers explained that the ban on bank accounts has crippled both the exchange and their customers’ ability to conduct meaningful business.
“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. 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 Zebpay wallet. “
The Reserve Bank of India has been a vocal critic of cryptocurrencies, with the apex bank hardening its stance following the price boom of cryptocurrencies last year. In April, the bank issued a blanket ban on cryptocurrencies.
The country’s central bank issued an order to entities regulated by RBI, asking them not to deal with or provide services to any individual or business entities dealing with VCs, and ordered entities which already provide such services to cut off all relationships with crypto exchanges.
India’s Supreme Court yet to deliver judgment
Following the crackdown on cryptocurrency trading in the country, the exchanges took the RBI and other government agencies to court.
The legal battle has dragged on for months, and the strain on exchanges is starting to show as the ban is still in place until a judgment is delivered, with the closure of Zebpay being the latest casualty of the country’s unwillingness to warm up to cryptocurrency trading.
Zebpay further added that despite the regulatory and banking issues they have continued to look for solutions. They don’t wish for India to miss the rise of cryptocurrencies and blockchain technology.
Huge interest in Zebpay before the crackdown
The cryptocurrency exchange was created in 2015 and was one of the first exchanges to offer cryptocurrency services in India. In the first two years of its existence, the exchange hit 200,000 app downloads and an annual turnover of Rs500 crore (US$68.9 million).
Towards the end of last year, the exchange was reportedly adding between 300,000 and 400,000 users every month.
Things took a turn for the worse when the Indian tax authorities began looking into the affairs of some exchanges in the country.
Zebpay had to stop fiat operations in time for the ban deadline in July, with the team hoping that things would change and they could resume full operations.