India’s regulatory response to Cryptocurrency has not been in favour of cryptocurrency trading. We know that by now. The markets remained unaffected for over 10 weeks until yesterday. In a first of a kind announcement, Zebpay, India’s biggest cryptocurrency exchange by volume warned its users of dismissing fiat (INR) services abruptly. The announcement is titled “Your Rupee Withdrawal Could Stop”.
What followed and still continuing across the Indian market is ‘Panic Selling’. Within minutes of the announcement Bitcoin price went down by more than a lakh on Zebpay. The alts followed suit. XRP prices reached Rs. 28, IOST prices reached Rs. 1.6, VeChain was selling for Rs. 150 and so on. These prices were atleast 20% less compared to international exchanges.
For a brief period it seemed like the prices were stabilising, and for most part of the day they remained lower than international exchanges but didn’t move much. Zebpay later released an FAQ for their announcement and assured users that ‘INR withdrawals will work till the banks permit’.
Refer FAQ related to our rupee withdrawal announcement. Here are some of the commonly asked questions, and our responses.https://t.co/OSk4PAZEri
— zebpay (@zebpay) June 21, 2018
The FAQs may have helped some users to calm their nerves down. However, the titular virus has spread and some alts are selling at over 20% less prices on Indian exchanges as of now. Zebpay’s announcement crashed the market for all Indian exchanges.
Some Saw an Opportunity
While many traders sold their crypto holdings, possibly at a huge loss, some saw an opportunity to buy it cheap. Many users on Twitter and our telegram group were depositing INR and scooping up crypto at a so-called ‘discount’.
FUD is awesome, please do this every month so that we can buy coins for cheap.
— Thejas (@thejaskatta) June 21, 2018
Amazing eaŕning Profit opportunity 😂😂
Buy BTC in cheap price from ZEBPAY and Sale at high price on other indian exchanges. Go Go Quick
— Osmangani (@pOsmangani) June 21, 2018
FUD or not, the regulatory deadline is close and if banks do not co-operate with the exchanges, the INR withdrawals will eventually be shutting down. The deadline is July 5, 2018. But there are many ways to keep your investment safe or keep trading.
Was Zebpay right in making the announcement? What do you think? Let us know in the comments below: