One of the largest cryptocurrency exchanges in India, Zebpay, has already warned their users that the withdrawals for fiat may stop in the coming future as it depends on the upcoming hearing in court.
The state of crypto exchanges and the nature of cryptocurrencies in India is still unclear. But as of April this year, the Reserve Bank of India (RBI) issued the notice on all institutions of finance all over the country which barred them from any business related with any crypto companies.
The order is now on trial at court by a number of crypto exchanges together with other companies to owe their alleged lack of any legal evidence, on a Supreme Court hearing scheduled on July 20, 2018.
Meanwhile, Zebpay is preparing for the worst scenario even before the hearing starts. They warned their users on particularly withdrawing their fiat.
“As per a recent RBI action, banks have been told to discontinue banking services to those dealing with virtual currencies. While our industry is challenging this legally, the outcome is beyond our control. Hence, if you are holding any rupees, or depositing any rupees in Zebpay, there could soon come a time when we may not be [sic] able to honor withdrawal requests. Please continue only if you understand this risk,” the post stated.
The warning given by Zebpay created a panicked sell-off that made a drop on the Bitcoin prices in India.
But the decreasing prices do not limit alone on India but the whole crypto market around the globe is going through a fresh downturn with a sell-off being caused by Bitcoin by dropping at nine percent in the past 24 hours while Litecoin and Ethereum both have fallen by 12 percent.
Pointing out the cause is difficult but Japan’s tight grip on the crypto exchanges together with the Bithumb hack aftershock could be a contributing factor to the bearish trajectory of the market.