Another cryptocurrency exchange has shifted its operations overseas to the island nation of Malta. This time, the exchange is of Indian origin and was celebrated as one of the biggest exchanges in the country; Zebpay. The exchange had just announced a shutting of the shop in India less than a month ago.
The exchange, even after shifting is going to function under the same name but will undergo a huge market shift.
Zebpay Leaves India
In a very emotional message, Zebpay announced less than a month ago that they were suspending all operations and shutting down the exchange. The reasons cited for this was that the team could no longer find ways and means to run their business under the current regulations.
“The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”
The message was sent out as an email blaster and was also posted on the home page of the exchange’s website and other social media handles. The exchange allowed its customers a brief amount of time in which they could remove and liquidate their assets from Zebpay and then shut shop.
Less than a month on, the exchange has announced that they will be leaving and relocating their company’s headquarters to the island nation of Malta. The main reason being more favorable regulations and legalisation. Further solidifying Malta’s position as a cryptocurrency hub.
Zebpay is set to join the likes of Binance and Bittrex when it sets up shop in Malta. Who also shifted to the island nation in search of more favorable regulations and governmental practices with regard to the cryptocurrency market and industry.
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Zebpay Not To Serve Indian Community
The shift to Malta is not only a geographical change for the exchange. The move to Malta also seals and ends the Indian community’s relationship with the exchange because the exchange will no longer provide its services to the Indian market.
Utilising Malta’s location and strong bonds with the European Union, the exchange plans to establish itself there as a European exchange. The exchange will now focus only on the European market and then branch its way out to the USA.
Tip of the Iceberg
The fact that Zebpay, one of the pioneers of the Indian cryptocurrency market and community, has been forced to leave the country in search of better and more favorable regulations has left a sense of panic in the community. Zebpay was India’s first and largest cryptocurrency exchange which was widely subscribed to.
[bctt tweet=”The fact that Zebpay, one of the pioneers of the Indian cryptocurrency market and community, has been forced to leave the country in search of better and more favorable regulations has left a sense of panic in the community. ” username=”ItsBlockchain”]
Too many people believe that the move that Zebpay has made in moving its headquarters to Malta, is just the first of many such moves. They believe that more exchanges will soon follow suit and the Indian community will suffer this loss of access to the market and the country; a loss of business.
Zebpay shut operations in India following a blanket ban issued by the Reserve Bank of India which essentially isolated the cryptocurrency market from the banking industry and services of the country. Thereby making it harder for the community to get involved and liquidate.
Though the matter is stuck at the Supreme Court, it is the beginning of what seems to be taking the shape of a very drawn-out case. The verdict has been deferred twice already and the second time the verdict was deferred indefinitely.
There is a sense of fear among the community as they believe, the longer the government and courts take to act on the cryptocurrency verdict, the more cryptocurrency businesses and exchanges will leave the country in search of more favorable regulations. It is also an increasingly popular opinion that this may just be the government’s intention, to play it out slowly and then smoke these exchanges out of the country.
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