India’s cyptocurrency exchange ZebPay shuts down!!
October 1, 2018 11:40 am,
One of India’s largest cryptocurrency exchange, ZebPay, declares shut down and stops all operations. India has been facing continuous trouble from the RBI regarding the regulations for digital currency and barred many financial institutions, thus affecting the crypto market. The exchange states that they have fought for very long against the pessimism about cryptocurrencies in India, as they hoped to change the future of the crypto market in the second largest country by population in the world. Despite the various regulatory actions, the exchange tried to bring solutions since they did want the country to miss the digital assets benefits that power the Blockchain. They stated that “The curb on the bank accounts, crippled the customers” and also had an effect on the transaction ability. They were unable to find a reasonable way to conduct the business in the crypto field.
The Reserve Bank of India has been unsympathetic to the virtual currencies from the many years. In 2018 (April) the Central Bank cracked down on the ecosystem, requesting the lenders not to deal with or provide services to any individual or business entities dealing or settling with the virtual currencies. Indian cryptocurrency exchanges took the RBI and other government agencies to the Supreme Court, ensuing a legal battle.
ZebPay was started in 2015, latched on the coattails of the Indian investor’s early interest in cryptocurrencies, hitting around 200,000 app downloads and an annual turnover of Rs.500 crore in less than two years. Whenever an increase in price, investors sceptical to enter the ecosystem, though the customers interest levels were increasing at an unprecedented levels. But, the party began winding down as the tax authorities began looking into this issue and affairs of the multiple crypto exchanges, eventually leading to RBI and the finance ministry to step in. In 2017, India had 10 exchanges with 5 million users bringing monthly volume of $1.5 billion. After that it has been one blow after another, other exchanges like Zebpay, Unocoin, WazirX and CoinX shifted to crypto to crypto and peer to peer trade just to survive. So, now the openly hurting Indian crypto ecosystem is bleeding.