India’s Largest Crypto Exchanges Halts Operations
The ban on fiat dealing with crypto exchanges has forced other trading firms to look for ways to survive with the policy in place.
Zebpay Concludes Business In India
A leading cryptocurrency trading platform from India has shut down. The Zebpay exchange revealed on Friday that it will be terminating its operations following a ban by the central bank on the cryptocurrency sector.
The exchange started operations in 2015 with its services conducted through an application. In a span of days, the app gained a lot of users with interest in bitcoin wallet and trading. Through its KYC model, the exchange hit close to 500,000 downloads on the Android OS alone by June last year. Come the 2017 bear run, Zebpay downloads hit 1 million. From the period, about 500,000 users came on board every month.
Data on the Zebpay website shows that it has accumulated about 3 million users through android operating system alone. The exchange was home to 20 digital currencies while trading pairs stood at 22.
Before the shutdown was announced, it was alleged that the exchange was in the process of raising an extra $4 million as stage one funding. The trading functions will immediately stop at 4 pm local time. The shutdown is a direct implication of the recent policy introduced by Reserve Bank of India. The policy requires all financial service providers from serving the country’s cryptocurrency industry. Even banks has been affected by the directive.
Meaningless Transactions at Zebpay
In a statement, Zebpay said that its services had been crippled following the ban on bank accounts. Customers will no longer be able to transact. The firm added that with such conditions, the exchange functions had become meaningless.
To customers, Zebpay said that that orders involving cryptos that are yet to be executed can still be terminated. Tokens will then restored to clients’ wallets for depositing and withdrawal of the preferred cryptos. However, market players are keen to see if storage gains development support in the coming days.
The ban was foreseen early this year with Zebpay even issuing warnings to customers. The exchange raised an alarm stating that in the near future fiat withdrawals would not be enabled on the platform. Just before the ban, Zebpay ended all deposits and withdrawals through fiat currency. While Zebpay has chosen to vacate the market, competitors are looking for ways to survive with the ban in place.