One of the largest cryptocurrency exchanges in India, Zebpay, has issued a notice to the cryptocurrency traders to withdraw their funds to fiat as soon they will not be able to do so. This open letter was issued in light of the petition filed against the RBI and its decision to prevent financial institutions from working with cryptocurrency in India and the businesses and individuals dealing in crypto.
The open letter stated that individuals and businesses would not be able to withdraw their rupees unless banking services permits are given to Zebpay to do so. Zebpay is concerned that even though they currently have the withdrawal function, soon it will be changed depending on the decision made by the Supreme Court.
Since the time Zebpay issued the letter, Bitcoin and Ethereum have both crashed and investigators believe that Zebpay issued this non-legal letter for their own gain. The prices of Bitcoin and Ethereum did not fall because of any new statement made by the RBI or any decision made by the courts. They solely crashed because of the letter from Zebpay, which some believe was made to instill fear in the minds of individuals, businesses, and investors. Whether or not this is true it’s hard to tell, but the relationship between RBI and cryptocurrency in India is seen as ‘being complicated’.
Cryptocurrency Status In India
Though the country has not gone out and banned cryptocurrency in India, the RBI has sanctioned some very hardcore restrictions to the financial institutions not allowing them to deal and engage in any activity concerning cryptocurrency. The rule has not been enforced so far as the RBI has been taken to court by the crypto community in India and a hearing has been scheduled for the 3rd of July by the Supreme Court.
A lot have people have in the past spoken about cryptocurrency in India and the government regulations saying that the government will not be able to keep a track and check on every transaction that takes place with crypto as most of the people will be doing their transactions from the privacy of their homes and the government cannot go inside people’s houses to check on them. They also suggested the government needs to accept that cryptocurrency in India would not be possible to regulate, Crypto Disrupt reported.[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. ]