Indian Crypto Exchange Zebpay Halts Fiat Ops due to Banking Freeze

Chirayu Choubisa

July 5, 2018 11:39 am

Cryptocurrency News

Zebpay one of India's biggest Crypto Exchange declared that they are freezing Indian Rupee deposits and withdrawals, a day before a controversial bank ban...
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Zebpay one of India’s biggest Crypto Exchange declared that they are freezing Indian Rupee deposits and withdrawals, a day before a controversial bank ban on digital currencies comes into force.

In a statement, Zebpay stated current events were “beyond its control” having earlier cautioned users that rupee deposits and withdrawals “could” stop if the verdict from the Reserve Bank of India (RBI) went ahead.

An update to the original warning reads:

“INR deposits and withdrawals have been suspended in the Zebpay app until banks permit us again.”

On Tuesday, Supreme Court of India supported the ban deadline, refusing to grant an extended grace period to digital currencies business which depends on banking connections to serve customers.

The ruling means the July 5 deadline still holds, while Supreme Court affirmed that it would hear the petition against the ban on July 20.

As the plan was formally issued on April 6, some business has sought alternative means of providing fiat support, a fellow exchange WazirX showing it would transform into a P2P platform so that no in-house conversion between crypto and fiat would be necessary.

CEO Nischal Shetty told local news outlet Economic Times:

“If banking is something the exchanges are not authorized to do, then the solution is something that direct banking doesn’t come in.”

Zebpay has earlier struck a confident tone in the face of the ongoing uncertainty surrounding digital currencies in India.

During an interview in February, co-founder Mr. Sandeep Goenka stated that he “welcomed” government proposals to crack down on illicit activity, calling for a joint effort to support the local economy.

He commented:

“We urge the government to work with our members, as we are committed to detect, report, and eliminate suspicious transactions in pretty much the same way as other institutions do.”

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