Originally shared on https://blog.zebpay.com/zebpay-announcement-about-your-rupee-balances-656b0c3efd23
Update on 4th Sep 2018:
Dear Zebpay Users,
Over the past 4 years, we have been overwhelmed by the trust that you have placed on us. What could be better than many hundreds of thousands of users that have have transacted the equivalent of (literally) billions of dollars on Zebpay!
While we are very grateful for the love and support, we are equally aware of our responsibility towards you: our users.
In early April 2018, RBI issued a circular that led to the termination of banking transactions related to crypto-trade in early July 2018. We have been distressed at the raw deal crypto-traders are getting in India as a result of the banking problems. It seems rather unfortunate that people are being stopped from making their own decisions in what to buy and sell with their own money. To be technically precise, there is no real blockade that any regulator or governmental agency has placed on buying, possessing, or selling of Bitcoin (or other crypto). Still, withdrawing banking support does have a crippling effect on our industry, and your participation in it.
We Are Planning on Returning All Our User’s Money
We could hide behind the stalemate that has been imposed upon our industry owing to the RBI action, but we choose not to do so. Today we are announcing our intent to work with our bankers, and return all the money (Indian Rupee) that you have sent us for purposes of trading. Not doing so would make us feel like we are holding you hostage, and that is not a good feeling. When this happens, all your outstanding INR-related orders will be cancelled, and your rupees returned to your bank account. Please keep this in mind while deciding on your investment and trading strategy.
The Future
Zebpay is convinced that the public blockchain architecture is great for India and will help India maintain its leadership position in the Information Technology world. And for the functioning of the public blockchain, a coin / token, such as Bitcoin, is essential. We will continue to untiringly engage the government, regulators, and other institutions to explain this, so that India doesn’t miss the blockchain bus. We will also continue to work on coming up with a solution and mechanism that works in your best interest, and doesn’t expose you to avoidable risks.
Here are some questions you might have as a result of this announcement:
What About Customer’s Crypto in Zebpay Wallets?
Zebpay crypto wallets will continue to work, and you are welcome to hold your coins and tokens with us. Of course, if you want to withdraw (or deposit) crypto, you can always do it as you choose.
What About Crypto-to-Crypto Trading?
The entire discussion in this announcement relates to Fiat (INR) related activity. Crypto-to-Crypto trading will continue.
Can Customers Deposit Rupees Into Zebpay?
No.
What Action Will Customers Have to Take to Withdraw Rupees?
None. If our banks support us, we intend to send back all the money to users without any specific action from them.
When Is All This Likely to Take Place?
In the interest of protecting our customers we want to do this at the earliest. For now, we will temporarily be closing INR related trading pairs at 5 p.m. on Wednesday 5 Sep 2018. At that time, all pending orders involving INR pairs will be cancelled. While it is not possible for us to speak on behalf of our banks, we intend to return your money to you as soon as possible after that.
To Which Bank Account Will the Money Be Returned?
To the bank account that customers listed with us.
What If a Customer Wants to Update Bank Account Details?
If it is absolutely necessary, then please send in your updated bank details right away. All changes submitted by 6 p.m. today (Tue 4 Sep 2018) will be updated before we process any withdrawals.
To hear more about some of the thinking behind this, you can watch a video from our CEO in English at: http://bit.ly/2oD1vHl or Hindi at:http://bit.ly/2oBQPIX. Please note that the contents of the videos are more in the form of a general discussion. The contents of this post are the official announcement.