Zebpay, one of India’s most prominent exchanges, announced that it would be shutting down services today. This comes after the continued ban on cryptocurrency to bank transactions in the country has crippled existing exchange services.
They stated on their Twitter page:
“We are stopping our exchange. At 4 PM [IST] today, we will cancel unexecuted orders & credit your coins to your Zebpay wallet. No new orders will be accepted. The Zebpay wallet will work even after the exchange stops.”
While they reassured users that their funds would be returned, they also mentioned that they would not be able to continue their business in the subcontinent due to “regulatory and banking problems”. They explained that the curb on the ability to use bank accounts has “crippled [their] ability to transact business meaningfully”.
The Reserve Bank of India, which is the regulatory party for banking-related activities in India, continues to enforce the ban on banks doing transactions with businesses that deal in cryptocurrencies. While many exchanges have gotten around the problem with solutions such as Peer-to-Peer transaction for fiat withdrawal and deposit, the drying up of liquidity on the Zebpay platform has led to the company shutting down.
Nischal Shetty, the Founder and CEO of WazirX exchange, said in a statement to AMBCrypto:
“We’ve already found our solution to the RBI ban which was P2P and its working really well for us. We don’t see a shutdown as a response to the RBI problem. I think exchanges that adapt to these regulatory uncertainties will emerge victorious in the long run.”
On the closure of Zebpay, he stated:
“As far as the shutdown of Zebpay is unfortunate for the ecosystem because while they are our competitors we would like to have good competition so that ultimately the ecosystem benefits and even the traders get the best trades in the right exchanges.”
Siddarth, the co-founder of WazirX, stated:
“I salute Zebpay for their contribution to India’s blockchain space. A lot of investors got their first bitcoin from Zebpay, they made Bitcoin popular in India. Thank you. I am sad to hear this news.”
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