As the start of the crypto banking ban by the Reserve Bank of India approaches, cryptocurrency exchanges in the country are preparing to stop fiat deposits and withdrawals while boosting crypto-to-crypto trading. Zebpay plans to continue crypto-INR trading pairs even after the ban. Unocoin has launched a weighted basket order tool to simplify crypto investing.
No Fiat Withdrawals But Trading to Continue
The date for India’s crypto banking ban imposed by the Reserve Bank of India (RBI) is drawing near. All regulated banks and financial institutions must stop servicing cryptocurrency exchanges by July 5.
Zebpay, a leading cryptocurrency exchange in India, warned its customers this week that their “rupee withdrawals could stop,” citing RBI’s order. The exchange wrote:
"If Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible…[However] Crypto deposits and withdrawals are continuing as usual. The RBI circular only talks to banks, and other regulated entities about shutting accounts. This doesn’t affect BTC and other cryptos."
Having launched a crypto-to-crypto trading service in April, Zebpay announced Thursday its intention “to continue offering crypto-to-crypto trading.”
The exchange also clarified, “Our present intention is to allow crypto-INR pairs to trade even after our bank accounts shut [down].” Nonetheless, it warned, “we are unable to fathom all the consequences of the bank account shutting [down] and hence cannot guarantee that we will continue the crypto-INR trade pairs forever.”
Soon after Zebpay’s announcement, the trading volumes of all cryptocurrencies on the exchange spiked while their prices dropped. The price of BTC fell sharply by about 20%, from ₹458,879 to ₹367,733, before leveling off around ₹405,000.
Some media outlets have suggested that Zebpay manipulated crypto prices with its announcement. However, the exchange insists that it “does not buy, sell, or trade in crypto. It is just an exchange platform that match-makes buy-and-sell orders of its customers.”
Crypto Asset Allocation Tool
Another major Indian exchange, Unocoin, announced the launch of an asset allocation tool this week. This weighted basket order tool, called Crypto Basket, allows investors to buy “cryptoassets based on market cap” and “according to exchange volume.” It also allows specific customizations by letting investors “uncheck cryptoassets” which they do not want to buy, the exchange detailed.
This tool is available on Unodax, the multi-crypto exchange platform which Unocoin recently launched. The company described:
"The basket order helps you to place orders for multiple cryptoassets with a fund distribution model of your choice. You can let Unodax set the distribution for you, or choose your custom distribution model."
Supreme Court Hearing After the RBI Ban
On April 6, RBI issued Circular DBR.No.BP.BC.104 /08.13.102/2017-18, banning all banks and financial institutions under its control from providing services to cryptocurrency companies.
The central bank, however, recently admitted that it issued the ban without doing enough research.
Crypto industry participants have engaged with the central bank to offer alternatives; some are asking for the deadline to be extended. The country’s Supreme Court said it will hear all petitions against the ban on July 20, which is two weeks after the ban commences.
How much do you think the RBI ban will affect the Indian crypto industry and exchanges? Let us know in the comments section below.
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Wait till supreme court hearing, may be some good news is waiting for all indians.