RBI Ban: Indian Crypto Exchanges to Stop Handling Fiat Deposits and Withdrawals

RBI Ban: Indian Crypto Exchanges to Stop Handling Fiat Deposits and Withdrawals

As regulatory uncertainty in the Indian cryptosphere continues, exchanges and crypto-related businesses in the country are putting measures in place to cushion the effect the Reserve Bank of India’s ban may have on their businesses.
Despite strong criticisms and petitions from stakeholders in the nation’s digital currency industry against the RBI’s directive that banks should stop servicing crypto-related businesses by July 5, it appears the mandate will hold as planned.

Exchanges Tidy Up

The Zebpay cryptocurrency exchange has notified customers that they may be unable to make deposits or withdraw rupee to their bank accounts starting from July 5 due to the RBI embargo.

“If Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible…[However] Crypto deposits and withdrawals are continuing as usual. The RBI circular only talks to banks, and other regulated entities about shutting accounts. This doesn’t affect BTC and other cryptos,” Zebpay stated.

Notably, in what appears like a forward-thinking maneuver, Zebpay launched its crypto-to-crypto trading service back in April, and the exchange has reiterated that things will remain on that level pending when the RBI ban is lifted.  
Importantly, Zebpay also notified users that crypto-INR pairs would remain live on the platform even after their bank accounts must have been shuttered.

“Our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut [down]. We are unable to fathom all the consequences of the bank account shutting [down] and hence cannot guarantee that we will continue the Crypto-INR trade pairs forever,” Zebpay warned.

As is expected, the Zebpay announcement triggered a surge in the trading volume of all digital assets on the exchange, with their prices following the opposite direction.
The move made local media to accuse the exchange of market manipulation. However, Zebpay fired back saying it has no business trading cryptos and  that it’s just an exchange that “match-makes buy-and-sell orders for clients.”

Unocoin Crypto Basket

India’s highly reputable exchange Unocoin have also announced a new product it calls Crypto Basket. The Unocoin team stated that the crypto basket allows users to buy digital currencies based on market cap and trade volume of the exchange.
“The basket order helps you place orders for multiple crypto assets with a fund distribution model of your choice. You can let Unodax set the distribution for you, or choose your custom distribution model,” Unocoin stated.

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