Indian Crypto Exchange to Return Rupee Balances to Customers Despite RBI Prohibition

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Thu, 09/06/2018 - 11:16
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Yuri Molchan
Zebpay intends to refund INR (Rupee) balances to clients’ bank accounts
Indian Crypto Exchange to Return Rupee Balances to Customers Despite RBI Prohibition
Cover image via U.Today

Zebpay crypto exchange is concerned with the presence of limiting measures that have been imposed on the crypto industry by the Reserve Bank of India (RBI), consequently, its customers have also become worried about their fiat INR stored on the exchange for trading purposes.

A bold move

On the one hand, digital currencies are not officially prohibited in India. However, back in April this year, RBI forbade all banks to service crypto trading companies.

Anyway, the exchange decided to be bold and work out a deal with banks in order to transfer its customers’ money back to their accounts as soon as possible.

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While Zebpay reps are negotiating with banks and sending the money back, all trading orders made in INR will be canceled, the fiat money will be put on clients’ wallets and processed.

Adoption of P2P format

From now on the trading company will conduct only crypto-for-crypto transactions, following the example of a few local platforms that have changed their business model after the authorities had implemented their limitations.

They continue to trade on a P2P basis as long as it is still legal, however, the majority of exchanges have not followed suit due to lack of liquidity and their customers being disinterested in this format.

On Wednesday, all orders involving INR-crypto were canceled and the processing of fiat balanced began.

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Indian government initiates research of crypto

Even though Indian officials are still suppressing cryptocurrencies, they are actively experimenting with Blockchain, launching pilots in collaboration with various local and foreign companies. The situation seems to be similar to Russia and China, these countries are also prohibiting virtual coins but embracing the open ledger technology.

As U.Today recently reported, the Indian government has launched a task force to study crypto thoroughly and even consider an opportunity of creating the country’s own centralized coin.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.