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India’s top cryptocurrency exchange is urging users to withdraw funds

Shubham Raj
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India’s top cryptocurrency exchange is urging users to withdraw funds

RBI, in a circular issued in April, had banned entities under its regulation from conducting any business with cryptocurrency firms

As three-month ultimatum given by Reserve Bank of India to banks nears the end, Zebpay, one of the largest cryptocurrency exchange in India, has said customers are “welcome” to withdraw rupee balance from the exchange as long as its bank account is functioning.

The exchange said it will not be responsible if customers are not permitted to withdraw their funds in case there is a disruption in banking services.

“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,” Zebpay said in a press release.

RBI, in a circular issued in April, had banned entities under its regulation from conducting any business with cryptocurrency firms. The central bank had given an ultimatum to banks to “exit the relationship within three months from the date of this circular.” The three month’s period is set to lapse on July 6.

“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,” the exchange said.

The cryptocurrency firms and businesses have already approached courts to challenge the RBI diktat. “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,” Zebpay said.

Similarly, a Gujarat-based company, Kali Digital Ecosystems Pvt Ltd, which was proposing to undertake the business of operating a cryptocurrency exchange system for customers within India had moved to Delhi High Court challenging the order.

The businesses were also imploring the option of using State Bank of Sikkim which is a government banking entity but does not come under RBI.