Zebpay, India’s Leading Bitcoin Exchange Shuts Its Services. On September 28, 2018, one of India’s biggest bitcoin exchanges, Zebpay, announced that it would be shutting down its services effective as of 4 pm that afternoon. This came after the continued ban on cryptocurrency to bank transactions in the country has crippled existing exchange services.
Launched in 2015, Zebpay started trading with an app-only service. This quickly became one of India’s most-downloaded bitcoin wallet and exchange apps. With a “know your customer” (KYC) compliance model, Zebpay struck half a million downloads on Android. The country’s most popular smartphone platform. By mid-2017, which quickly doubled to hit a million app downloads during 2017’s bear run in October.
The company recorded up to half a million new users joining the platform every month. Up from the 200,000 new users already joining the platform on a monthly basis.
On its website, Zebpay states that it had 3 million users using its iOS and Android apps. With support for 20 cryptocurrencies and 22 trading pairs.
Rumored to be in talks to raise an additional $4 million in funding at one stage. Zebpay is now stopping all exchange services. The Reserve Bank of India (RBI), India’s central bank, to force all regulated financial institutions. Also, this includes banks from offering services to the domestic cryptocurrency industry.
In a statement issued on its blog page, Zebpay said, “At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business. As a result, we are stopping our exchange activities. At 4 PM today (28 September 2018), we will cancel all unexecuted crypto-to-crypto orders. Also, credit your crypto coins/tokens back to your Zebpay wallet. No new orders accepted until further notice.” However, it adds that the Zebpay wallet will continue to work even after the exchange stops and one is free to deposit and withdraw coins/tokens into their wallet.
After the RBI banned banks and payments wallets to extend their services to cryptocurrency entities, most cryptocurrencies are facing death threats. With almost 800 cryptocurrencies having gone belly up, cryptocurrency exchange Zebpay has now decided to shut down, however, while other exchanges are finding novel ways to circumvent the ban.