Indian exchange Zebpay shuts down due to RBI banking ban

28 Sep, 2018
by Will Heasman
Indian exchange Zebpay shuts down due to RBI banking ban

A prominent exchange in India has been forced to close due to pressure mounting from the banking services ban imposed upon the cryptocurrency sector by India's central bank.

Zebpay made the abrupt announcement yesterday:

A link to an official blog post details the reasons for closure, specifically citing the RBI banking ban as a determining factor:

“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 has operated since 2015 with the initial launch of its wallet and exchange app; the company quickly morphed into one of India’s top exchanges. 

Back in April, the Reserve Bank of India (RBI) initiated a circular to all financial institutions within the country banning them from financial dealings with cryptocurrency business’. That ban took effect on July 5th and is still in effect until the final court decision on the matter is reached. 

Read more: Fiat support coming back to many Indian exchanges despite ban; Several Indian crypto exchanges share their expectations ahead of RBI hearing; India courts rule against lifting cryptocurrency banking ban

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