Zebpay, India’s Biggest Bitcoin Exchange Shuts Down; Find Out The Real Reason!

Zebpay has said that their wallet will continue to function.

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Zebpay will shut down
Zebpay will shut down

Today is a sad day for all cryptocurrency enthusiasts and investors from India.

Zebpay often hailed as India’s largest bitcoin exchange, and one of the largest cryptocurrency exchanges, have given in and decided to shut down.

This is a major blow to the still nascent cryptocurrency industry in India.

A few minutes ago, they tweeted that at 4 PM today, they will stop their exchange, and the coins will be returned to the Zebpay wallet.

However, Zebpay wallet will continue to function even after the shutdown of their wallet.

Here is their tweet:

The Amazing Journey Of Zebpay Till Now

Founded in 2015, Zebpay gradually became a name to reckon with in the cryptocurrency world, especially in India.

Zebpay was an app-only exchange, which scaled half-a-million downloads on Android by mid-2017, and then breached the 1 million mark in October 2017 during the peak months of Bitcoin trading.

Around 200,000 new users were joining Zebpay every month.

As of now, Zebpay claims to have 3 million registered users on Android and iOS platforms, with the support of 20 cryptocurrencies and 22 trading pairs.

There were rumors about a possible infusion of $4 million as VC funding into Zebpay, but nothing was confirmed.

While announcing the shutdown on their blog, Zebpay said, “Lakhs of Indians took their first step into the world of Bitcoin using the Zebpay app. Your trust has been the pillar of our strength.”

Why Zebpay Decided To Shutdown Their Service?

The primary reason for Zebpay to shut down their exchange is RBI’s order on a complete ban on Bitcoins and other cryptocurrencies, which was announced in the month of April 2018.

We had described this move as the ‘final nail in the coffin for cryptocurrencies in India’.

This ban meant that banks controlled by RBI were no longer authorized to permit any transaction related to buying or selling bitcoins, etherium and other cryptocurrencies in India.

This decision crippled cryptocurrencies all over the country, as they now, they were suddenly illegal.

Without a banking structure, how can any investor convert their fiat money into cryptocurrency or vice versa?

While explaining the reason for shutting down, Zebpay said in their blog: “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.”

Even as existing cryptocurrencies are looking at alternative ways to deal with this ban, The Central Board of Direct Taxes and the Enforcement Directorate has strongly recommended a complete ban on any form of cryptocurrency trading in India.

At the same time, RBI is looking at ways to launch their own cryptocurrency!

Zebpay’s shutting down is a sad, unfortunate chapter in the cryptocurrency story of India.

Do share your views and opinions by commenting right here!

Also Read:

Indian Crypto Exchanges On High Alert; Zebpay Asks Users To Withdraw All Money ASAP!

Crypto-Ban Gets Support From Supreme Court; Is Peer-To-Peer Next Solution After July 5th?

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