It will be impossible to withdraw fiat INR from the platform: Zebpay
Cryptocurrency hasn’t been having a good time in India since the time it came here. For obvious reasons, the government has been keeping the cryptocurrency in a gray zone in India. Furthermore, the hearing on banking ban on the cryptocurrency is approaching. Zebpay, which is India’s biggest cryptocurrency exchange platform, has been warning its users that their fiat money will be affected.
The firm has been warning its users that their fiat rupee withdrawal could stop completely in near future, thanks to the guidelines from Reserve Bank of India (RBI) on the ban of cryptocurrency recently.
on April 5th, the RBI had published a circular stating the details on the ban. The circular mandated financial institutions, domestic banks, and other firms to restrict cryptocurrency services to businesses like exchange firms. The banks have 3 months of period to sort out these services and settle the business with such firms. By July 5, it is more likely that the bank accounts of these firms will be shuttered. And hence, the customer will not be able to withdraw their invested rupees from the cryptocurrency exchange firms.
In an announcement, made on Saturday ZebPay posted:
“In light of that [RBI circular], 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.”
Being specific, the exchange emphasized saying that the customers will be able to withdraw their investment from the exchange only if they have such permit from RBI, which doesn’t seem possible any soon.
However, in FAQ of this big announcement, ZebPay said that they are planning to allow crypto-INR pair, after their bank accounts are shut on 5th July. This would allow users to buy crypto with their frozen fiat INR. Furthermore, Zebpay cannot commit or guarantee anything on this as it’s the RBI who’s the deciding authority in this case. Zebpay says it’s uncertain of the consequences that would come live after 5th July.
Post this announcement, the price had a spike in trading volumes with a low of ₹350,782 around $5150 USD, which after trading near ₹ 460,000 around $6758 under 24 hours time span. At the time of writing this post, Bitcoin is doing really good as compared to it did yesterday and last week. The price is $6210.01 as per coinbase