India's leading cryptocurrency exchange shuts down operations: Details here
What's the story
One of India's biggest cryptocurrency exchanges has shut down after being plagued by restrictions from the RBI.
Zebpay, which ran operations for the past three years, shuttered on September 28, canceling all unexecuted cryptocurrency transactions.
It has stopped taking further orders and promised to refund incomplete orders as crypto tokens/coins into the Zebpay wallets of the users.
Here are the details.
Reason
Why are they closing the exchange?
Earlier this year, the Reserve Bank of India ordered major banks and financial institutions to stop all transactions related to cryptocurrencies.
The move, as the exchange said in a blog post, crippled its business as well as its customers' ability to transact meaningfully.
And when they had no viable option to continue the business, the exchange was closed.
Zebpay wallet
But, their wallet will still be working
Though Zebpay's exchange business has been halted, the company has assured that its wallet will keep working even after that.
This way, Zebpay's existing customers will be able to use refunded or deposited crypto token/coins to make purchases or invest in ventures as per their needs.
The company further added that withdrawals from the wallet won't be restricted either.
Directive
RBI v/s Cryptocurrency exchange businesses
The RBI has always been against virtual currency businesses, but the real battle started when the former issued a directive asking financial institutions to sever ties with entities dealing in cryptocurrencies.
This prompted cryptocurrency exchanges to take RBI and other government agencies to court, leading to a long waiting period for Zebpay to sustain.
The court is yet to rule on the matter.
Business
Meanwhile, a quick look at the Zebpay's business in India
Zebpay started off in 2015 as one of the first platforms to serve as an exchange for Indian cryptocurrency investors.
Their annual turnover went past Rs. 500 crore within two years and during 2017, when cryptocurrency market was on the rise, they were adding 200,000 to 300,000 users every month.
Now, Zebpay's rivals would hope to seize this opportunity to attract their customers.