Among the global crypto market slump, Zebpay, of the biggest cryptocurrency exchanges in India, has finally shut down its operations following the regulations imposed by the Reserve Bank of India earlier this year.
The company in its official blog stated that all unexpected cryptocurrency transactions would be cancelled starting at 4:00 pm on September 28th, and after that, cryptocurrency orders will no longer be accepted. Zebpay notified that all incomplete orders would be refunded as crypto coins and tokens back into the Zebpay wallet of customers.
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
“The recent past has been tough. The restraints on banks accounts have crippled our customer’s ability to transact business meaningfully. Right now, we are unable to find a better way to conduct the cryptocurrency exchange business. However, we are stopping our exchange activities”, the company stated this in an official blog post.
Zebpay has also assured that despite taking a break on the cryptocurrency exchange business, the Zebpay wallet will still be functional, enabling customers to initiate a transaction using their crypto coins and tokens making online purchases or investing in a venture. Also, the company’s customers will be able to carry out deposit and withdrawal from their wallet.
Back in April this year, RBI issued a new directive which prohibited institutions falling under RBI’s regulation from engaging in cryptocurrency trade, pointing severe concerns about customer’s protection and possibly encouraging crimes like money laundering. Aside from restricting financial bodies from dealing in cryptocurrencies, RBI has also asked them to cut ties with all private firms and parties involved in cryptocurrency trade.
Follow the directive by RBI, cryptocurrency prices in India tanked, with Ether, Bitcoin, Litecoin, Ripple and Bitcoin cash being the major crypto denominations which suffered a sharp reduction in their exchange value in India.
However, back then Zebpay was among the cryptocurrency exchange which lowered the quoting price of Bitcoin considerably by listing its exchange value at Rs. 3,75,580 ($5179.34), compared to its international exchange value of Rs. 4.29 ($0.059) at that time. And now that Zebpay has stopped trading, other cryptocurrency exchanges such as WaziX have jumped on the opportunity to poach Zebpay’s existing customers.