Zebpay sent an email to the platform users today at 1:39 Pm in light of recent Reserve Bank Of India Circular, dated April 6th, on ‘Prohibition on dealing in virtual currencies.
Zebpay said that they have approached the Supreme Court of India to challenge. In case the rupee holders choose to place a withdrawal request, they shall try to return the rupee balance to bank accounts as soon as possible, long as the banks support such withdrawal. As banks fear RBI more than their care for Zebpay.
On April 5th, the Reserve Bank of India issued an announcement stating that it will not deal with or provide any service to entities trading with any cryptocurrencies such as Bitcoin. Nationalised banks have already prohbited the transacations and people are using other means to buy bitcoins nowadays.Releasing a circular on the same announcement on April 6th, the central bank had given three months to banks to settle their businesses with these trading platforms and other related entities, and consumers dealing with cryptocurrencies.
With regard to this circular, it was reported that the RBI has not made any serious effort to completely study and understand the nature, principles, and usage of cryptocurrencies before issuing the ban as no internal committee had been established to investigate the claimed risks associated with trading digital coins.
This ban has been challenged in the Supreme Court the next hearing has been scheduled for July 20th. The window provided by India’s central bank for financial services providers to comply with its directive ends on July 5th.
The copy of that email read as following:-
This is a VERY IMPORTANT announcement in light of the recent Reserve Bank of India circular: DBR.No.BP.BC.104 /08.13.102/2017-18 dated April 6, 2018.
Our industry has approached the Supreme Court of India to challenge the circular, as we feel it is counterproductive, and against the interest of citizens. As a responsible corporation, we regard customer-protection and market-integrity as our primary objectives. In light of that, please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible. This can cause discontinuation of crypto trade based on rupees, or at least cause significant price movements. This is something you should keep in mind if you choose to hold rupees in your Zebpay account.
Please note that you will not be able to withdraw rupees unless Zebpay has banking services that permit such withdrawal. Also, in case of disruption of banking services to Zebpay, you hereby indemnify Zebpay, and agree to hold Zebpay free and harmless at all times, against all claims, proceedings, expenses, costs, actions in the event of any prejudice and/or loss being caused to you by any act or omission by Zebpay or any other party, in regard to your rupee balance, transactions, trading, deposit, or withdrawal.
Of course, since our bank accounts are functional at the time writing this announcement, you are welcome to place a withdrawal request for your rupee balance. If you do that, we will endeavor to return your rupee balance to your bank account as soon as possible, so long as our banks support such withdrawal. If you choose to withdraw your rupees, please make sure to also cancel your unexecuted trade orders if any.