One of India’s biggest exchanges, the Zebpay crypto exchange which had recently pulled down its shutters in the country, now has a registered office in Malta. The exchange intends to serve not just the residents and citizens of the island country, but also other European nations. Zebpay already has a registered office in Singapore. India’s stringent regulatory supervision is forcing crypto exchanges to exit the country for foreign shores.
The Reserve Bank of India delivered a lethal blow to the Indian cryptocurrency ecosystem in April. It prohibited Indian banks from entering into any kind of business relationship with cryptocurrency traders and digital currency bourses from the month of July onwards, this year.
On September 28, the Zebpay crypto exchange shared in a blog post that this curb on bank accounts has crippled the exchange’s and its customers’ ability to carry out business meaningfully. Hence it stated that it is unable to find a reasonable way out of this to carry out its business further. The exchange thus announced to stop its exchange activities in India, as stated in the Quartz India report.
Reason For Choosing Malta As Its Destination
Malta has of late become the “Go To” destination for a lot of crypto exchanges as the island nation provides transparent regulations that are more favorable towards virtual currencies. This especially holds a lot of importance in the present day scenario, as some of the other Asian countries have turned hostile towards cryptocurrency. The Maltese government’s approach towards inviting more crypto companies has turned it into a haven for cryptocurrency exchanges.
The RBI’s banking freeze that was announced in April has had a negative impact not just on exchanges like the Zebpay crypto exchange, but also on the wider blockchain ecosystem in India. As reported on CCN, the harsh regulatory position of the Indian government on virtual currencies is causing a brain drain in the country’s blockchain space.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]