Following the decision of the Reserve Bank of India (RBI) to ban cryptographic banking services, exchanges are trying to educate the Central Bank to revise its position. But in the meantime, they close one after the other the withdrawals and deposits in currency.
The RBI ban came into effect today, July 5
Last Tuesday, the Supreme Court of India received a petition against the banking ban on cryptocurrency by the RBI.
The Internet and Mobile Association of India (IAMAI) filed the petition following three previously filed petitions.
The Supreme Court had already announced that it intended to deliberate on this subject on July 20.
The RBI announced in its circular of 6 April that the ban would come into force on 5 July.
That is why the signatories of these petitions had asked to be heard on July 3, a request that has just been denied.
This petition will therefore be heard on July 20, as scheduled, by the Supreme Court, which has therefore not granted a suspension of the ban.
Closing accounts on Indian trade
Thus, since today, the Indian cryptocurrency exchanges, announce one after the other the closing of their deposits and withdrawals in fiduciary currencies.
Among them, one of the largest cryptocurrency exchanges, Zebpay announced:
“Today, we disable the rupee deposit and withdrawal options on the Zebpay app. This is done in the light of bank account closures according to RBI guidelines … INR deposits and withdrawals were suspended in Zebpay’s application until the banks allow us again. “
Another important exchange, Unocoin, also issued a statement following the refusal of the Supreme Court to suspend the ban:
“Banking should be revoked this week … if you remove or deposit rupees in Unocoin, there could be a time when we might not honor such requests.”
Another example of an exchange of crypto currencies, but smaller this one, Coinome, has stopped deposits and withdrawals in Rupees since July 4th. However, he explained to his clients that their “cryptographic assets will continue to hold their value in global markets”. He advised them not to sell under the effect of panic.
The Pexo exchange meanwhile asked its customers to withdraw their funds before the deadline.
On the other hand, the Wazirx exchange wanted to calm its customers and announced that deposits and withdrawals in INR continued to function normally. Indeed, the exchange has launched its P2P trading which is supposed to take over when the banks stop providing services to the stock market.
Regarding Pocketbits, it is said that only INR deposits would be available and withdrawals will remain so.
The exchange explained:
“Our current banks have given us an extension to disburse all the funds, that does not mean that we will have functional bank accounts indefinitely. We will notify our users several days in advance before withdrawals are completely discontinued. “
Finally, Koinok says that INR withdrawals will be available on the exchange even after July 5th.
How to suspend the ban on RBI?
For the IAMAI association, only an explanation of what are cryptocurrencies and blockchains could change the mind of the RBI.
For them, this prohibition comes from the total lack of understanding on the part of the competent authorities.
That is why, during the Supreme Court hearing last Tuesday, she submitted a detailed document explaining the operation of blockchains and virtual currencies.
The Supreme Court then sent a notice to the RBI asking them to respond within 7 days.
Nischal Shetty, founder and CEO of Wazirx, explained, “If the RBI gets a deep understanding of blockchains and crypto currencies, then it can ease the ban and think about regulation.”
To be continued…