One of India’s biggest crypto firms, Bitcoin wallet and exchange platform Zebpay, has alerted its clients that their fiat rupee withdrawals could cease altogether in the near future, in accordance with the Reserve Bank of India’s (RBI) recent ban. On April 5th, the central bank issued a circular mandating regulated financial establishments including domestic banks to forbid services to crypto businesses like exchanges. The central bank mandated a three-month deadline and it’s plausible that cryptocurrency exchanges could see their bank accounts closed by July 5.
In this case, the users will no longer be able to withdraw their deposited rupees, India’s fiat currency, from crypto exchanges. In a statement on Saturday (first published on Thursday), Zebpay claimed:
In light of that [RBI circular], please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible. This can cause discontinuation of crypto trade based on rupees, or at least cause significant price movements.
Cryptocurrency Exchange, India
Definotely, the exchange pointed out that the clients will only be able to resume withdrawing their fiat deposits if “Zebpay has banking services that permit such withdrawal” after the July 5th deadline has passed.
Zebpay warning on Twitter
In a related-FAQ, the company claimed its ‘present intention is to let crypto-INR pairs” after their bank accounts are shut to allow users acquire crypto with their frozen fiat deposits. Nevertheless, Zebpay alerted it “cannot guarantee that we will continue the crypto-INR trade pairs forever”, stating it’s unable to currently “fathom all the consequences” of the looming banking blackout.
The central bank revealed earlier this month that it had processed no research nor consulted any opinions from experts or the government prior to enforcing the arbitrary banking prohibition on the crypto sector.