The news came out after The Reserve Bank of India‘s verdict to implement a ban on crypto-related activities. The press release was published on September 27, with only a few hours’ notice.
The exchange platform explained that the conditions to maintain the business have become difficult, and the bank‘s decision has crippled its ability to process customer orders.
Zebpay was started in 2015 and soon emerged as the top Bitcoin wallet and exchange app. With the know your customer (KYC) business verification process, the exchange was able to get over half a million downloads on Google‘s Play Store. In 2017, it surpassed the one million downloads mark.
It was estimated that every month more than 200,000 new users join the exchange platform, and 3 million smartphone users utilize the iOS and Android apps. Zebpay has 20 cryptocurrencies and 22 trading pairs.
The decision to shut down the business came as a surprise to many, as there were rumors that the company will raise $4 million in funding. On Twitter, Zebpay told customers that new orders wouldn‘t be accepted anymore and all unexecuted orders will be canceled. The Zebpay wallet will continue to work after the exchange‘s termination.
The team promised to look for solutions because India does not deserve to miss out on the opportunities which that blockchain technology offers. In June, after the Central Bank‘s ban, Zebpay notified customers that fiat withdrawals could not be possible in the future. A day before the bank freeze, the exchange platform stopped all fiat deposits and withdrawals.