The saga surrounding The Reserve Bank of India (RBI) and their attempt at banning cryptocurrencies continues. We have recently seen confirmation from the RBI that they failed to do any prior research before making a move to ban cryptocurrencies, and of course a team of legal officials are working on determining how much say the RBI have in this matter, but regardless, the RBI deadline of the 5th of July now nears. As a result of this, many investors and traders in India may no longer be able to exchange their crypto-assets for Rupees, the FIAT currency of India.
This is especially concerning, given that the current state of the markets may be encouraging some investors to buy out.
Zebpay, one of India’s largest cryptocurrency exchanges have tweeted an open letter which discusses some issues that customers may face after the 5th of July, as a result of the action taken by the RBI.
Zebpay Announcement: Your Rupee Withdrawals Could Stop pic.twitter.com/DFQOWC1gBs
— zebpay (@zebpay) June 21, 2018
According to their recent tweet, Zebpay have stated:
“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. This is something you should keep in mind if you choose to hold Rupees in your Zebpay account.”
“Please note that you will not be able to withdraw Rupees unless Zebpay has banking services that permits such withdrawal.”
They also state that during this time, proper to the 5th of July, Zebpay operations are still live and thus, until this point customers will be able to withdraw assets as Rupees.
What does all of this mean? Well, depending on high court decisions and of course the say of the RBI, many customers in India could lose access to their Rupees, unless they happen to draw them out prior to the 5th of July. Moreover, Zebpay recognise that any decisions made will cause huge price fluctuations, something that investors should be considering over the coming days and weeks.
With the 5th of July just over one week away, we need to start paying close attention to India and the RBI. This saga could be able to get a lot more interesting.