After months of increasingly strict regulatory measures imposed by the Indian Government, the country’s largest cryptocurrency exchange, Zebpay, has been forced to shut its doors.
In April this year, the Reserve Bank of India (RBI) issued a bill that effectively banned any banks or financial institutions from interacting with cryptocurrency-related entities. While several blockchain and digital asset companies have attempted to take legal recourse with the Supreme Court, a resolution is yet to been found.
We are stopping our exchange. At 4 PM 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.
— zebpay (@zebpay) September 28, 2018
Zebpay represents India’s most important avenue for exposure to the emerging cryptocurrency economy and a vital conduit to the billion dollar market, but following months of crippling legislative hurdles, it has been forced to cease operations.
“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,” the company noted in a recent blog post.
As a result of the closure, Zebpay has asked all Indians to withdraw any remaining capital they have invested in the platform with immediate effect. It issued a further notice stating that no new orders will be accepted until further notice.
Not all blockchain and digital asset enterprises in India agree with Zebpay’s decision, citing additional avenues for continued operation within the country. Several other Indian exchanges believe it is possible to continue functioning through peer-to-peer (P2P) trading but accuse Zebpay of not being motivated to explore such options.
Zebpay CEO Ajeet Khurana made a clear statement at a recent Blockchain event outlining the organization’s disinterest in P2P trading.
Nischal Shetty, founder of P2P exchange WazirX said, “While Zebpay has been a competitor, it’s unfortunate to see they’re shutting down their exchange. The crypto community needs to stay strong and stick together.”
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