Indian exchange Zebpay might stop crypto-to-fiat conversions

One of India’s leading cryptocurrency exchanges, Zebpay have announced that they may soon have to make some changes. In light of the decree that was released and distributed by the Reserve Bank of India, the exchange, that previously has and still does provide the service of converting crypto assets into fiat currency and subsequently depositing it into the linked bank account, has announced on their official Twitter handle that they may have to stop doing so.

The decree that was released on the 6th of April clearly stated that all banks, companies and businesses that are registered with them had to drop all accounts that had dealings in cryptocurrencies and suspend all cryptocurrency related activity in three month’s time.

The three month that the RBI has given expires in the first week of July.

This is the announcement that was made by the exchange.

Zebpay Announcement: Your Rupee Withdrawals Could Stop pic.twitter.com/DFQOWC1gBs

— zebpay (@zebpay) June 21, 2018

The exchange reassures its users that they will continue to provide the crypto-to-fiat conversion as long as they have the government and the bank’s support.

After the circular was released in April there was a lot of speculation over the fact that the exchange, irrespective of being the leading exchange in the country, had taken no action neither had it lent support to the other players in the industry challenging the circular in court. To which the exchange came out and said that they would like to work with the government and not against it and would abide by the rules and regulations that the government laid out.

India’s See-sawing Stand on Crypto

The Indian government has been very hot and cold with the cryptocurrency market. They have neither banned it nor completely legalised its use and the market continues to function in a fairly gray region.

The announcement of the circular on the 6th of April triggered multiple lawsuits against the financial institution, primarily led by founders of various exchanges in the country. There was also an Right To Information Inquiry made into the premise of the decision, whose response revealed that the body had actually done little to no research on the market before releasing the decree.

Just last week the community was buzzing with rumours of the country legalising the use of cryptocurrencies in the country and having gotten to the decision after having set up a panel to discuss the market’s advantages and future.

But nothing rock solid and trustable has come from the horse’s mouth yet.