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Major Cryptocurrency Exchange In India Warns Against Fiat W...
Exchange

Major Cryptocurrency Exchange In India Warns Against Fiat Withdrawals

(Last Updated On: June 27, 2018)

Zebpay – One of the pioneer exchanges in India is warning users regarding the expected impact of India’s banking ban on the cryptocurrency sector ,the date of which is approaching near ,on fiat deposits. The ban imposed by the Reserve Bank of India has made the cryptocurrency exchanges in the country to prepare to stop fiat deposits and withdrawals during crypto to crypto trading. Zebpay intends to continue crypto-INR trading even post the ban implementation.

As per the warning by Zebpay, a Bitcoin wallet and exchange platform in India the fiat rupee withdrawals of it’s customers could stop altogether in the approaching future due to the recent ban by Reserve Bank of India. Zebpay said :

If Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible…[However] Crypto deposits and withdrawals are continuing as usual. The RBI circular only talks to banks, and other regulated entities about shutting accounts. This doesn’t affect BTC and other cryptos.

In april a circular was issued by the central bank to the regulated financial institutions to stop services to cryptocurrency businesses like exchanges. As per the circular all regulated banks and financial institutions must stop servicing Cryptocurrency exchanges by July 5. Under this mandate customers would not be able to withdraw their deposited rupees, indian fiat currency from exchanges.

Since zebpay has already initiated crypto-to-crypto trading service a couple of months back, it is intended to continue with the crypto to crypto trading.

In this regard the exchange said  :

Our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut [down].we are unable to fathom all the consequences of the bank account shutting [down] and hence cannot guarantee that we will continue the crypto-INR trade pairs forever.

The exchange made it clear that post the July 5 deadline the customers will only be able to withdraw their fiat deposits if Zebpay has banking services that permit such withdrawals.

Here is the announcement by Zebpay

Dear Customer,

This is a VERY IMPORTANT announcement in light of the recent Reserve Bank of India circular: DBR.No.BP.BC.104 /08.13.102/2017-18 dated April 6, 2018.

Our industry has approached the Supreme Court of India to challenge the circular, as we feel it is counterproductive, and against the interest of citizens. As a responsible corporation, we regard customer-protection and market-integrity as our primary objectives. In light of that, please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible. This can cause discontinuation of crypto trade based on rupees, or at least cause significant price movements. This is something you should keep in mind if you choose to hold rupees in your Zebpay account.

Please note that you will not be able to withdraw rupees unless Zebpay has banking services that permit such withdrawal. Also, in case of disruption of banking services to Zebpay, you hereby indemnify Zebpay, and agree to hold Zebpay free and harmless at all times, against all claims, proceedings, expenses, costs, actions in the event of any prejudice and/or loss being caused to you by any act or omission by Zebpay or any other party, in regard to your rupee balance, transactions, trading, deposit, or withdrawal.

Of course, since our bank accounts are functional at the time writing this announcement, you are welcome to place a withdrawal request for your rupee balance. If you do that, we will endeavour to return your rupee balance to your bank account as soon as possible, so long as our banks support such withdrawal. If you choose to withdraw your rupees, please make sure to also cancel your unexecuted trade orders if any.

Refer FAQ related to this announcement to some of the commonly asked questions,

The central bank, however, recently admitted that it has issued the ban without doing enough research. The supreme court of India said that all the petitions against the ban on July 20. While the ban will commence two weeks earlier to the scheduled hearing.