Major Indian Bitcoin Exchange Zebpay Shuts Down Due to Banking Freeze

Zebpay, the largest crypto exchange in India in terms of volume, has announced it will be closing its exchange services later today (September 28th). The announcement was made on twitter a few hours ago:

Zebpay was responsible for playing a pioneering role as the major cryptocurrency exchange in India, as many Indians took their first steps in the cryptoworld using the platform. In a blog post, Zebpay team explained the reason behind the halting of exchange services:

The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.

It seems that national policies were the central cause behind the closure of the Zebpay exchange.

India’s central bank, the Reserve Bank of India (RBI), had issued a ban on cryptocurrencies in April, prohibiting any regulated financial institution or bank to offer services related to the cryptocurrency industry. Although cryptocurrencies exchanges tried to reverse the situation by filling a petition, India’s supreme court reported in July that the ban would remain active until a final hearing that has yet to happen.

Since the ban, trading volume on Zebpay had been steadily falling. In July, the company announced it would pause Indian rupee deposits and withdrawals, making the 24-hour trading volume to plummet from $5 million to just over $200,000. Although the company will close down its exchange, all tokens will be credited to users’ wallets and the wallet service will remain active, with the exclusion of the trading features.

Zebpay and Crypto in India

Founded in late 2012, Zebpay started trading using its wallet app, and quickly became one of the most-downloaded apps in India, boasting 3 million users and supporting 20 cryptocurrencies and 22 trading pairs at the time of this writing.

 

Justin Sun Congratulates CZ on Binance Coin (BNB) Price Setting a New All-Time High

On Saturday (April 20), Justin Sun, the Founder and CEO of TRON Foundation congratulated Changpeng Zhao (aka "CZ"), the CEO of Binance, and the rest of the Binance team on the Binance Coin (BNB) price breaking its previous all-time high (ATH), which had been set in January 2018.

This was the tweet Justin sent out at 08:54 UTC on April 20:

CZ replied with this tweet:

According to CryptoCompare, at 07:05 (UTC), the BNB price reached the new ATH of $25.42, as can be seen in the 24-hour price chart shown below:

BNB - 24 Hour CC Chart - 20 Apr 2019.png

As CryptoGlobe reported on April 18, there have been quite a few catalysts behind the impressive rise in the price of BNB over the past three months, a few of which are listed below:

  • High successful initial exchange offerings since January 28 (BitTorrent, Fetch.AI, Celer Network) via Binance Launchpad.
  • Ever-expanding list of use cases for Binance Coin.
  • Regular quarterly BNB token burns (the 7th one was reported by Binance on April 16).
  • Successful mainnet launch of Binance Chain (on April 18), with the swap from ERC20 BNB tokens (on Ethereum) to BEP2 BNB tokens (on Binance Chain) expected to begin on April 23 at 00:00 (UTC).

With regard to future BNB price catalysts, since Binance seems to be betting its future on Binance Chain, the main ones are probably:

  • a successful token swap process (i.e. from ERC20 BNB to BEP2 BNB);
  • existing projects, such as decentralized social media platform Mithril, announcing their migration to Binance Chain; and
  • new projects deciding to adopt Binance Chain.

Finally, if you are a BNB token holder and you are worried about how to prepare for the mainnet token swap, the best advice comes from Binance:

 

Featured Image Courtesy of Binance