Indian cryptocurrency exchange Zebpay said they may be withdrawing support for rupee withdrawal on Friday.
On April 5, the central bank, the Reserve Bank of India directed all banks to stop functioning as intermediaries between cryptocurrency exchanges and Indian customers.
Referring to that, Zebpay said, “Our industry has approached the Supreme Court of India to challenge the circular, as we feel it is counterproductive and against the interest of citizens. As a responsible corporation, we regard customer protection and market-integrity as our primary objectives.”
It explained that if the judgement goes the other way, and Zebpay accounts are disrupted, it will be impossible to credit fiat deposits or withdraw from the account. This could cause discontinuation of crypto trading based on rupees and may cause significant price movements.
It said, “Please note you will not be able to withdraw rupees unless Zebpay has banking services that permit such withdrawal. Also in case of disruption of banking services, you hereby indemnify Zebpay and agree to hold Zebpay free and harmless at all times, against all claims, proceedings, expenses, cost, action in the event of any prejudice and/or loss caused to you by any act or ommission by Zebpay.”
Although Zebpay announced crypto-to-crypto trading in April, soon after the RBI circular, fiat trading was still an option on the platform.
According to the post on Medium, Zebpay had added multiple options at the time. It had a) An overhauled user experience that allows for easy switching between INR and BTC trading pairs, b) The dropdown menu of each pair showed additional information such as 24-hour high low and 24-hour percentage change c) And automated calculation of coin quantity.