Zebpay Challenges RBI Circular in the Supreme Court Of India

Zebpay Challenges RBI Circular in the Supreme Court of India

Zebpay today at 1:29 PM sent out an important announcement in light of the recent Reserve Bank of India [RBI] circular, dated April 6th, on ‘Prohibition on dealing in Virtual Currencies’.

Zebpay is a Bitcoin wallet provider with its headquarters in Singapore and IT office in Ahmedabad, Gujrat, India.

In the announcement, Zebpay said that they have approached the Supreme Court of India to challenge the RBI Circular. They also directed the rupee holders. In a case where the rupee holders decide to place a withdrawal request then they shall try to return rupee balance to bank accounts as soon as possible, as long as the banks support such withdrawal.

On April 5th, the Reserve Bank of India had issued an announcement stating that it will not deal with or provide any service to entities trading with any cryptocurrencies such as Bitcoin. Releasing a circular on the same announcement on April 6th, the central bank had given three months to banks to settle their businesses with these trading platforms and other related entities, and consumers dealing with cryptocurrencies.

It was reported that the RBI has not made any efforts to completely study and understand the nature, principles, and usage of cryptocurrencies before issuing the ban. Not only this but even no committee was set up to look into the claimed risks associated with trading digital coins before putting the ban.

This ban has been challenged in the Supreme Court the next hearing has been scheduled for July 20th. The window provided by India’s central bank for financial services providers to comply with its directive ends on July 5th.

The announcement reads:

“This is a VERY IMPORTANT announcement in light of the recent Reserve Bank of India circular: DBR.No.BP.BC.104 /08.13.102/2017-18 dated April 6, 2018.

Our industry has approached the Supreme Court of India to challenge the circular, as we feel it is counterproductive, and against the interest of citizens. As a responsible corporation, we regard customer-protection and market-integrity as our primary objectives. In light of that, please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible. This can cause discontinuation of crypto trade based on rupees, or at least cause significant price movements. This is something you should keep in mind if you choose to hold rupees in your Zebpay account.

Please note that you will not be able to withdraw rupees unless Zebpay has banking services that permit such withdrawal. Also, in case of disruption of banking services to Zebpay, you hereby indemnify Zebpay, and agree to hold Zebpay free and harmless at all times, against all claims, proceedings, expenses, costs, actions in the event of any prejudice and/or loss being caused to you by any act or omission by Zebpay or any other party, in regard to your rupee balance, transactions, trading, deposit, or withdrawal.”

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