Due to the recent bank on the cryptocurrency exchange by the Reserve Bank of India (RBI), and the recent ruling by the Supreme Court of India (the highest court in the country), Zebpay, which is one of India’s biggest cryptocurrency exchanges is stopping customers’ fiat deposits and withdrawals.
The platform made an announcement on Wednesday about their move to disable all deposits and withdrawals with the Indian rupee (INR) currency. Their reasoning for the move is because of the mandated ban by the central government that prohibits all the banks from offering their services to the cryptocurrency firms in the country.
As we reported yesterday that the RBI had issued a circular on the 5th of April that said that all the financial institutions, including banks should stop providing services to companies in the cryptocurrency sector. They also enforced a 3-month deadline to give some leeway for the companies and the institutions to follow the mandate. The deadline will come into effect on Thursday despite a number of legal attempts to challenge RBI’s decision to block all the cryptocurrency exchanges in the country.
But the disabling of fiat withdrawals and deposits on Zebpay is not a sudden out of the blue move. The company did warn its users last month that it could be possible that they might have to disable fiat deposits and withdrawals through their platform.
Existing users who still choose to use the platform and the new users who are looking to register with the KYC-enabled exchange are now being greeted with the message below whenever they open the application.
The Internet and Mobile Association of India was able to fast-track a legal challenge against the RBI ban and was able to get an early hearing today at the Supreme Court. However, their request to grant a temporary stay was denied and there will be no extension of the deadline issued by the RBI in the circular on the 5th of April.
There is still hope amongst the domestic crypto investors and adopters and they hope that the regulations would be able to recognize and legalize the sector.
Some good news is still there for the Indian crypto market though. Subash Chandra Garg, the secretary of the Department of Economic Affairs said, “We are fairly close to developing a template [for the crypto regulations] that we think is in the best interests of the country.”
He also mentioned that they intend to discuss the draft with the committee members in the first week of July, and it is possible that they might be able to reach a conclusion within the first fortnight of the month.