Indian Crypto Exchanges Begin Shutting Down Due to Ban
According to CCN reports, India’s SEBI had officials travel to both Switzerland and Japan in order to achieve an improved understanding of digital asset and blockchain targeted regulations. The meetings occurred as a final preparation for the nation’s hearing related to a digital asset trading ban issued by India’s central bank.
Upon learning of this proactive approach to reach out to crypto leaders in an attempt to learn more about the emerging technology and the international standards of regulation imposed upon it, Indian investors had high hopes for the nation’s crypto movement. However, considering current events, many believe India’s regulators are far too late in their attempt to secure digital asset exchanges in the region.
Crypto Trading Platform Zebpay Quits The Race
After India’s central bank issued a crypto ban, Zebpay, the nation’s well known digital asset exchange, officially ended operations Friday, 28th September. Unable to access banking services from any financial entity across the country, the exchange officially closed down. Company representatives explained that due to the ban, neither the team nor its clientele was able to reasonably carry out the business of digital asset exchange.
Zebpay’s move to close operations has created a major impact towards the digital asset sphere across the entire region. Among the top three most popular and trusted BTC exchanges, Zebpay exemplifies the impact of impractical regulations issued by national authorities on the progress of the digital asset industry across the region. Despite proactive efforts to uphold global industry initiatives such as KYC and AML systems created to facilitate transparency with government organizations, India’s choice for a ban has put the market at a standstill.
The platform’s coFounder, Sandeep Goenka, announced that the exchange has every intention of working alongside government regulators in order to deter criminal activities related to the assets they trade. He also stated that exchanges within the region are on board with implementing all necessary actions to help regulators do so.
India on the Path to Isolation
Indian regulator strategy thus far has been transparent towards their intent and expectation of what regulating the digital asset market will entail. Officials believe that with regulation, the nation’s crypto market will grow and attack an influx in local digital asset related trading platforms and startups. However, analysts criticize this approach, noting that once businesses begin stepping out, recovering its reputation will prove to be a struggle.
For nations such as Malta, Japan, and Busan, a positive approach towards the introduction of cryptocurrency businesses was maintained, facilitating cooperative approaches to regulatory policy. This system helped introduce high-end blockchain based projects and attracted the world’s most popular exchanges. For India, the pressured approach may cost the nation years before it can rebuild its reputation and take part in the global crypto market.