Although the ban on the Reserve Bank of India (RBI), preventing banks from allowing crypto-exchanges to use the Indian rupee, may soon be disapproved of by the Indian Supreme Court, its implementation begins to have dramatic effects. Today, we learn that it is the Indian exchange Zebpay who must throw in the towel because of the ban.
Closure of one of the main Indian exchanges ....
We learn the news on the official Twitter of the cryptocurrency exchange:
"We stop our exchange. At 4:00 pm (local time) today (September 28, 2018), we will cancel the outstanding orders and credit your coins on your Zebpay wallet. No new orders will be accepted. The Zebpay wallet will work even after the exchange is stopped. "
In a more detailed announcement on their blog, we learn that this decision is due to the RBI, prohibiting exchanges to use the national currency:
"Zeb IT Service Ltd has played a pioneering role as a cryptocurrency trading platform in India. (...) Despite the regulatory and banking problems encountered throughout our journey, we continued to seek solutions because we did not want India to miss the mark of digital assets that fuel public blockchains. However, the recent past has been extremely difficult. The limitation of bank accounts has paralyzed our ability, as well as that of our customers, to make significant transactions. At this point, we are not able to find a reasonable way to conduct the cryptocurrency exchange activity. As a result, we are halting our foreign exchange activities (...) ".
... caused by the blind ban of the RBI
Indeed, the prohibition of the RBI has unfortunately come into force on July 5, the first request for suspension of this ban could not succeed. The closure of the Zebpay exchange activities is therefore a direct consequence of this arbitrary ban, which was not based on any argument or study, as the Reserve Bank of India herself admitted.
As CCN recalls, the Zebpay platform, launched in 2015, was one of the largest cryptocurrency exchanges in India, with 3 million users, support for 20 cryptoactives and 22 trading pairs. All of this is destroyed in an unjustified decision.
Let's hope that the project to regulate cryptocurrencies in the country, which was to end in late September, will save the situation. Otherwise India is likely to miss the check mark of the blockchain revolution. In any case for Zebpay, it is unfortunately already too late.
Sources: CoinTelegraph; News.bitcoin.com; NCC || Image from Shutterstock