In India, Zebpay, the once largest cryptocurrency exchange by trading volume in India, has announced that it is halting its trading services.
The Indian exchange has struggled to stay open since a ban on crypto-fiat transactions went live in July.
The Indian once largest cryptocurrency exchange revealed in a tweet that, from 16:00 local time (10:30 UTC) on Friday, it will stop its exchange service and terminate all unexecuted orders, crediting the funds to customers’ wallets.
“No new orders will be accepted,” the exchange said.
Indian regulation has made it difficult for exchanges such as Zebpay to get access to payment services and bank accounts.
In a blog post published by Zebpay, it further explained the decision directly results from the ban issued by India’s central bank earlier this year that prohibits domestic banks from offering financial services to crypto exchanges.
The cryptocurrency exchange explained: “The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business. As a result, we are stopping our exchange activities.”
Zebpay stressed that its wallet service will continue to operate even after the exchange halts, saying:
“Please note that the Zebpay wallet will continue to work even after the exchange stops. You are free to deposit and withdraw coins / tokens into your wallet.”
The fate of India’s cryptocurrency exchanges will be determined by an ongoing court battle between them and the RBI. Final arguments from the petitioning exchanges were expected to be heard on September 11th but, as of yet, there has been no final decision.
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