By India’s once-largest cryptocurrency exchange – Zebpay announced that is halting trading services later today.
The Ahmedabad-based exchange gave only a few hours notice in a tweet this morning stating that it will be stopping its exchange service & cancel any unexecuted orders thus crediting any funds to customers wallets.
The End of Zebpay?
“No new orders will be accepted,” said Zebpay.
Zebpay also went on, in a blog post published yesterday, to explain that this sudden decision stems from the recent ban on India’s central bank which prohibits any domestic banks from offering financial services to crypto companies.
Even though Zebpay continued to strive to provide alternative solutions in an effort to ensure that India didn’t “miss the bus of digital assets,”, they admitted that recent months since the ban have proven to be difficult:
“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.”
Despite the exchange service shutting down, Zebpay confirmed that their wallet services will continue to operate:
“Please note that the Zebpay wallet will continue to work even after the exchange stops. You are free to deposit and withdraw coins/tokens into your wallet.”
According to data supplied by CoinMarketCap, Zebpay’s trading volumes have been negatively affected by the Reserve Bank Of India’s decision.
It must also be noted that following Zebpay’s July decision to pause the deposits of Indian rupees & withdrawals saw their 24-hour trading drop from $5 million to a measly $200 000.
The Indian Reserve Bank issued it’s bank ban back in April, shortly after this many crypto exchanges filed petitions to the country’s supreme court, but the court said in July that this ban would remain in place until their final hearing was made which is yet be decided. A case was also postponed earlier this month.
Could this be the end of India’s largest cryptocurrency exchange? Let us know your thoughts.
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