One of the largest cryptocurrency exchanges of India, Zebpay, which serves about 3 million users, issued a warning to its customers that in the near future it could suspend the withdrawal of fiat money if the court decision so requires.
The status of the cryptocurrencies and trading platforms in India remains uncertain. However, in April of this year, the Reserve Bank of India issued a decree that banned local regulated financial institutions from interacting with companies that operate in the field of cryptocurrency.
This decision is currently attempting to challenge several stock exchanges and other companies in the Supreme Court, arguing that it has no legal basis. The hearing is scheduled for July 20.
In anticipation of the outcome of the proceedings, Zebpay decided to prepare its users for the worst. On the official website of the exchange a warning appeared, in which, in fact, it recommends issuing fiat funds.
“The RBI’s recent decision to banks was forbidden to interact with virtual currencies. While our industry is trying to challenge this decision in legal order, the result remains beyond our control. Thus, if you keep rupees on Zebpay or make deposits in them, the time may soon come when we will not be able to satisfy the withdrawal requests. Please continue to do this only if you are aware of the risks,” the Exchange writes.
The warning of Zebpay caused panic in the local market and the subsequent collapse of bitcoin prices.
However, the reduction is not limited to India alone. The wider cryptocurrency market faced another wave of sales on Friday, which has not recovered to the present day.
Bitcoin lost 9% in 24 hours, Ethereum and Litecoin – 12% each. As negative factors affecting the market, in addition to the situation in India, the strengthening of supervision over the sites for the exchange of cryptocurrency in Japan is called, because of which the country’s largest exchange bitFlyer was forced to suspend the registration of users, and the consequences of breaking the South Korean stock exchange Bithumb, which occurred in the middle of the week.