India’s First Crypto Exchange Shutters Business Over Strict Banking Regulation

Sep 28, 2018 at 19:29

India’s first bitcoin exchange Zebpay has closed down its trading activities today following a regulatory policy stopped banks from processing cryptocurrency transactions. In an announcement, Zebpay said it is stopping its exchange activities effective 4 p.m., Friday.

The same announcement was posted on its official Twitter account.

 

 

“The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully,” Zebpay said. “At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”

The crypto exchange made sure all unexecuted transactions of its users will be cancelled.

” We will cancel all unexecuted crypto-to-crypto orders and credit your coins / tokens back to your Zebpay wallet. No new orders will be accepted until further notice,” Zebpay said.

But even with the shutdown, the company assured that all wallets will continue to work, allowing users to “deposit and withdraw coins / tokens into your wallet.”

In April this year, the Reserve Bank of India (RBI) issued a circular mandating all regulated financial institutions including banks to prohibit services cryptocurrency companies.

This also prevented Indian residents from purchasing cryptocurrencies using their bank accounts.

Dealing with bitcoin since 2011, Zebpay launched India’s first bitcoin exchange in 2015. As indicated on its website, Zebpay has 3 million “happy users” while its platform supports 20 cryptocurrencies and 22 trading pairs.