Stringent Regulatory Measures in India Leads to Zebpay’s Departure to Malta
Every country around the world that still allows cryptocurrency to be exchanged and used is working to establish the right regulatory measures for their economy. India has been so aggressive in this endeavor that their crypto regulations that there are many platforms leaving the country completely. One of the biggest exchanges to get out of India is Zebpay.
Zebpay was bringing in some of the highest trading volume of any platform in India before it shut down it’s services in the country. This was a big shock to the system of users in the area at the time, considering that it was the home of about five to six million crypto investors in India alone. Luckily, that wasn’t the end of the platform at all, as they moved to Malta instead, which is the biggest crypto hub in the world. They also have a registered office in Malta.
The new exchange for Zebpay in Malta will be offering services in 20 different countries, from which India is excluded. However, the list of participating countries does include:
- Czech Republic
The whole issue started with a major ban in April by the RBI, which restricted banks from undergoing any business interactions with digital currency traders and businesses. The ban started in July, and it put a major strain on the ability to perform transactions, bringing the market from a high of 300,000 new customers monthly to less than 25,000 customers monthly. The smaller exchanges saw even less participation than that.
Zebpay made a blog post on September 28th about the issue, saying,
“The curb on bank accounts has crippled our, and our customers ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business. As a result, we are stopping our exchange activities”
Exchanges have been working to make the government more willing to accept the crypto world, but the results have been few and far between. The hearing that were started six months ago with RBI are still ongoing. There’s been efforts made to establish a committee that involves members of the RBI, the finance ministry, and the SEBI to establish a draft of regulators in the meantime, but even that has been met with roadblocks and delays. As a result, Zebpay has been just one of the many digital exchange that have been moving to crypto-friendly countries, like Singapore, Estonia, Japan, and Dubai.
So far, requests for additional information about the Malta office for Zebpay have been left unanswered.