One of the largest crypto exchanges in India, ZebPay, announced that as of June 22, it could be stopping all withdrawals to fiat in Indian Rupee from its platform. This comes on the back of an April 5 declaration by the Indian government that all banks must stop acting as intermediaries between exchanges and their users.

In a post on the ZebPay Medium blog, the company announced that the pressure from the government, which it disagrees with, meant it could cease processing fiat withdrawals to bank accounts, probably for all customers. Crypto-to-crypto trading will still be available, however.

The announcement is somewhat unclear as to the potential ramifications. The crux of the issue is that the ZebPay bank account could be shut down by the bank at any time, depending on many factors. In such a situation, the exchange will be unable to process crypto-to-fiat withdrawals.

The situation is mired in uncertainty. However, the company has made efforts to clarify on their site with an FAQ list:

“Q) If I do not withdraw my INR from Zebpay, and your bank accounts shut, will I be able to buy crypto against that INR?

A) Our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut. However, our entire industry is facing an unprecedented situation because of the RBI circular. For all practical purposes, banking is an essential service for any business. So, we are unable to fathom all the consequences of the bank account shutting and hence cannot guarantee that we will continue the crypto-INR trade pairs forever. But, to repeat: our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut.”

This news comes at an awkward time for crypto in India. On the back of the announcement from the government in April, local industry and price volatility have persisted in the face of a wide-scale shutdown of trading activity.

Indian Exchange ZebPay Stops Allowing Rupee Withdrawals; Broader Indian Crypto Ecosystem Under Pressure was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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