Last Updated : Jul 06, 2018 04:51 PM IST | Source:

RBI's directive for crypto doesn't mean the end of the world for exchanges

Some exchanges have said that the INR withdrawals are not stopping despite the ban

Moneycontrol News @moneycontrolcom

Following the Supreme Court’s refusal to grant a stay on the RBI's diktat issued in April prohibiting entities under it to extend services to cryptocurrency-related firms on Tuesday, exchanges in India have notified their customers of the inability to handle INR deposits and withdrawal.

The apex court blow means that banks will not allow accounts of cryptocurrency-related firms to function properly now as the RBI ultimatum of three months ended on Thursday.

Zebpay, the largest crypto exchange in India by trading volume, said it has paused INR deposits and withdrawals. “Today we are disabling the rupee deposit and withdrawal options on the Zebpay app. This is being done in light of the bank account closures as per the RBI guideline,” the company said on Wednesday.

Ajeet Khurana, chief executive of Zebpay, tweeted: Am very sad! But we will continue our relentless efforts to get things sorted. I am sure crypto is good for India. If we, as a nation, do not make up our mind, we will be caught on the wrong side of history and miss the crypto bus. And that will be a tragedy.

The company clarified that its fiat-to-crypto and crypto-to-crypto trading services were still active. According to data available at CoinMarketCap, the exchange processed $2.9 million worth of trade in last 24 hours. The BTC/INR volume itself was worth $1.27 million. Other fiat-to-crypto pairings were also active. However, the volume is considerably lower than normal.

Similarly, the volume of trade was $2.11 million at another Indian exchange, Koinex.

Other exchanges, such as Coinome and Pexo have also said that they were closing the INR deposit and withdrawal at the exchange. Pexo stopped the facility on Wednesday at 6 pm. The same was paused by Coinome on Wednesday at 11.59 pm.

However, some exchanges have said that the INR withdrawals are not stopping despite the ban. “Your INR withdrawals won’t stop. They are not stopping on 5th July. So no need to panic. Even if anything of that sort happens we have mechanisms in place to ensure all the withdrawals would continue happening,” the Bitbns said in a Medium post.

The company, however, didn’t delve further on how it is circumnavigating the RBI diktat. The trade volume at Bitbns was $1.41 million in the last 24 hours.

Another exchange, albeit smaller, KoinOK said, “INR deposits on KoinOK are running absolutely fine. Also, INR withdrawals (IMPS enabled) and KYC Verifications are being processed within 1 hour.”
First Published on Jul 6, 2018 04:33 pm
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