Zebpay, which is one of the biggest Crypto exchanges in India, has announced the halting of all operations in response to the nation’s central bank issuance of a ban on the Crypto sector.
The Increase In Platform Users
The Crypto exchange which was launched in 2015 began facilitating app only trading which quickly took off becoming among the most downloaded app and Bitcoin wallet in the nation. Due to its Know Your Customer (KYC) model, the app was quickly able to get over 500,000 downloads on Android which is the smartphone platform with the highest popularity in the country by mid last year. The app’s download statistics doubled up towards the end of last year, hitting over a million downloads.
As at the time of this continual growth of the platform, it recorded over half a million new users utilizing the platform with every passing month. Prior to this, it was reported that the platform was seeing at least two hundred thousand new users join the platform.
Through its website, Zebpay has indicated that for both of its iOS and Android apps there are close to three million users. The platform currently supports over a dozen digital tokens as well as has twenty-two trading pairs.
Wallet Service Functional
Although it was rumored to have been in the process of looking for ways to fundraise an additional $4 million, the exchange has announced that it has stopped the provision of all exchange services as at 1600 hours Friday, local time. This move has been as a result of the ban imposed on the crypto space by the RBI (Reserve Bank of India). The RBI has barred all regulated financial institutions within the nation from offering financial services to the sector.
In its official statement, Zebpay has said that as a consequence of the RBI’s ban, it has been impossible for it and its customers to continue transacting business in a meaningful manner. It went on to say that the decision has been taken as there were no other reasonable means it could use to facilitate the crypto exchange business.
The statement continued to state that any Crypto to Crypto transactions that had not yet been executed would be canceled and all customers will be receiving back their Crypto tokens into their wallets. This service, the wallet service, the firm has said will remain operational allowing customers to both deposit and withdraw their digital assets. Any developmental support is still yet to be seen for the wallet service.
Bypassing The Ban
When news broke that the Reserve Bank of India was looking to place a ban on the Crypto space, many within the space were critical of the move with some even going to the courts of law to have this possibility stopped and even reversed. Zebpay noted publicly that should the ban on the Crypto industry take effect the withdrawal and deposit of fiat currency from the trade of Cryptocurrencies would not be possible.
As the firm halted all fiat deposits and withdrawals upon the ban taking effect, other Crypto exchanges have used ingenious ways of bypassing it.