India’s largest bitcoin and cryptocurrency exchanges Zebpay, is stopping customers’ fiat deposits and withdrawals as a result of the central bank’s banking curbs.
With an announcement on Wednesday, cryptocurrency wallet and exchange platform Zebpay is moving to disable all Indian rupee (INR) deposits and withdrawals for customers as a direct consequence of the central bank’s mandated ban of prohibiting banks from offering services to cryptocurrency firms.
Reported by CCN, the Reserve Bank of India (RBI)– the country’s central bank – issued a circular on April 5 to all regulated financial institutions including banks, prohibiting them from providing services to companies in the cryptocurrency sector. The RBI pointedly enforced a three-month deadline for banks to follow the mandate. That deadline comes into effect on Thursday, despite several legal attempts to challenge the RBI-led banking blockade from cryptocurrency exchanges.
In a substantial win for India’s central bank against the cryptocurrency sector, the country’s Supreme Court refused to delay the banking ban with a ruling yesterday. The Supreme Court will hear the industry’s case against the ban again on July 20.
Meanwhile, domestic crypto adopters, investors and the wider industry remain hopeful of promised regulations that would recognize – in essence, legalize – the sector.
“We are fairly close to developing a template [for crypto regulations] that we think is in the best interests of the country,” revealed Department of Economic Affairs secretary Subash Chandra Garg in a televised interview last week.