Indian Crypto Exchanges On High Alert; Zebpay Asks Users To Withdraw All Money ASAP!
Indian Crypto Exchanges On High Alert; Zebpay Asks Users To Withdraw All Money ASAP! After July 5th, banks won't be allowed to deal in cryptocurrencies
There is rising uncertainty and doubts regarding cryptocurrencies in India right now. In a press release, Zebpay, which is one of the largest crypto-exchanges in India having more than 3 million subscribers, have informed everyone to withdraw their money parked in their exchange.
The request is to withdraw money as soon as possible.
What exactly is happening here?
RBI’s Deadline Effect: Crypto Traders In A Fix?
On April 6th, Reserve Bank of India had officially banned trading of cryptocurrencies in the banks. RBI had provided a deadline of July 5th, after which no bank will be allowed to accept or give out money related with crypto trading in India.
This was a major step against cryptocurrencies in India, and this created ripples all across the hemisphere.
Now, as July 5th deadline is approaching, crypto-exchanges have started issuing alerts to their users.
Zebpay, one of the largest crypto-exchanges have done just that: they have informed their subscribers and traders to withdraw their money as soon as possible, otherwise, they won’t be able to help after July 5th.
In a press-release, Zebpay said, “Of course, since our bank accounts are functional at the time writing this announcement, you are welcome to place a withdrawal request for your rupee balance.”
Zebpay has assured that as soon as the withdrawal request is placed, they will initiate the process to return the money.
After July 5th, they can’t guarantee.
They said, “Please note that you will not be able to withdraw rupees unless Zebpay has banking services that permit such withdrawal.”
At the time of writing, bitcoin was trading way below the peak of Rs 6 lakh which was attained in the last few months. Now, as Zebpay has officially requested withdrawal of money, the price of bitcoins and other cryptocurrencies can further slide.
What Happens Next?
After RBI banned any transaction related with cryptocurrencies in Indian banks, and Govt.of India declared cryptocurrencies as ponzi schemes, crypto traders and investors have approached the Supreme Court regarding this issue.
Last year as well, Supreme Court had asked Govt. to respond on a plea concerning the legal status of cryptocurrencies in India, and the matter is right now subjudice.
After the RBI ban in April, Delhi High Court issued a notice to RBI over their decision to ban crypto-trading in India banks, even as Income Tax officials demanded complete ban over digital currencies in India.
As per a RTI filed by crypto-currency advocates, there was no prior research or data with RBI, which convinced them to ban crypto-trading in India, and Delhi High Court has taken due notice of this fact.
As per latest reports, Govt. is considering to regulate the trading of cryptocurrencies in India, even as UNICEF has urged every mine Ethereum, which can help the poor.
We are expecting some concrete action by Govt over the issue of crypto trading, and hopefully, the decision would be announced before July 5th,
We will keep you updated.