Cryptoexchances in India Drop Fiat Support Following Reserve Bank Bans
Earlier this week, India’s Supreme Court reviewed a proposal regarding the new ban issued by the RBI, which forbids any service or transactions with digital currency exchanges and authorized financial entities operating under banks.
The court did not uplift the ban or grant a temporary halt, although a hearing has been scheduled later this month to further review the proposal presented by the IAMAI. In April, the RIB released a written statement banning all interactions between banks and digital coin exchanges.
Several exchanges declared the end of INR deposits and withdrawals on their systems following the ban. Zebpay, a top cryptocurrency exchange in India, announced that their app would stop processing INR deposit and withdrawal services until further notice. The exchange had previously notified its clients, alerting them to the possible cease of INR transactions on their platform although cryptocurrency transactions remain operational.
Among other companies to announce the same decision to halt INR-related activities was Unocoin, stressing that the court has denied any plea for a relief period to be granted. The exchange stated that any bank services will be denied following the ruling. Coinome made a statement urging its clients to sell their assets in a frenzy given the current ruling, and that all their coins will maintain their market value.
Wazirx, on the other hand, announced that its INR functions will remain operational. They also added that clients operating on its peer-to-peer trading platform due to launch after the ban is implemented will be allowed to cash in and out of crypto.
Pocketbits stated that although INR deposits may see an end on their system after the ban, withdrawals will continue to be available. Cryptocurrencies will remain completely available to withdraw or deposit by any user. The exchange explained that a minor extension was granted to allow the exchange to pay out, although this doesn’t mean that bank accounts will remain functional.
Nischal Shetty of Wazirx said that the IAMAI presented a report thoroughly documenting how cryptocurrencies and blockchains operated. A request was forwarded to the RBI, requesting a response within a week’s time. According to the CEO of Wazirx, if the reserve bank better understands crypto and how it operates, it might provide some leeway and relief.