The RBI mandate to ban crypto-related businesses by July 5 is going to end soon. One of the top crypto exchanges in India, Zebpay, is asking its users to withdraw money before the deadline.
The constitutional validity of the banking regulator’s decision has been challenged by crypto traders, exchanges and IAMAI in recent time. The matter has now reached the Supreme Court, where it will hear all matters relating to the RBI diktat against virtual currencies.
The apex court has also decided the next date for hearing to be on July 20.
As the matter is sub judice, there is no any clarity on the validity of such currencies in the future. This might have triggered the issue, as crypto exchanges try to prove their loyalty to customers.
The matter came to light when Zebpay posted multiple updates on its blog regarding the RBI deadline and currency withdrawal notice for its users.
On its website, Zebpay clearly states that it will not be responsible if customers are not permitted to withdraw their funds in case there is a disruption in banking services.
“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 endeavour to return your rupee balance to your bank account as soon as possible, so long as our banks support such withdrawal”, outlines the company’s blog.
Since the announcement, it created panic in the Indian market. Recent fall down in prices of Bitcoin, Ethereum and Litecoin due to the sudden decision can’t be ruled out.
Meanwhile, a ray of hope for crypto traders is still there as a panel formed by the government may give its decision in support of allowing cryptocurrency and influence the government’s early stance of banning it.
This is the first-of-a-kind announcement made by any crypto exchange in India. It will be a test of patience for investors and exchanges dealing in cryptocurrency before any firm decision comes from the government and the Supreme Court.