What Zebpay has done to get the right regulations for crypto in India?
Zebpay has spent the better part of the last few years talking to different government bodies to bring positive crypto regulation in India. We continue to support the cause for right regulation relating to cryptocurrencies in India. As one of the largest players to have operated in the crypto exchange space, rest assured that Zebpay is doing what it can to bring about a safe, secure environment with positive crypto regulation in India.
Zebpay has invested a considerable amount of time and resources to make this happen and has also been the biggest financial contributor towards the on-going case in the Supreme Court of India.
Why does Zebpay consider P2P trading a poor option?
A common question from our community is about our move to avoid a peer-to-peer model. The reason Zebpay doesn’t do this is because it doesn’t align with one of the core values on which Zebpay was founded; the safety and security of its users.
By using a peer-to-peer model with banking channels, a crypto exchange passes on the counter-party risk to its users. While using your bank account to transact cryptocurrencies is against RBI’s notification, the counter-party risk we are referring to is much greater. We do not want to expose our users to the risks of answering different law enforcement divisions across the country for ending up with an unlawful counter-party in a P2P transaction. Zebpay has invested heavily to ensure legal compliance of its exchange transactions, and a P2P model cannot match the scale and safety of the traditional exchange model that we saw in India until 2018.
How has Zebpay handled huge amounts of crypto without any incident?
Zebpay has the proud distinction of being an ‘incident-free’ exchange. With discipline and the right investment in infra security, Zebpay is one of the few exchanges globally that has handled huge volumes of cryptocurrency without incident.
Our industry demands significant investment to implement top of the line security measures, and Zebpay has met and often exceeded these requirements.
Our security measures include:
Multi-layered security architecture
Cold wallets in air gapped machines from different physical geographies
Thorough KYC, employee background checks and compliance
Regular 3rd party security audits
You can learn more about Zebpay’s security practices here.
When will Zebpay restart its exchange operations in India?
As of now, there is no timeline for when the regulatory environment in India would become clear for crypto operations. However, as soon as regulations, and our compliance and legal team give us the go-ahead, Zebpay will begin in India at a moment’s notice. Our goal in India is to seek regulatory clarity, not ease. Zebpay complies with even the most stringent regulatory requirements and would continue to do so. However in the absence of clarity of regulations, it is unviable to meaningfully serve millions of our customers in India.
How does Zebpay handle secure withdrawal of Indian user funds? How are withdrawals by Indian users charged?
Our withdrawal fees remain the same as it was before we paused our exchange operations. Even though maintaining user balances, handling security and support are expenses that we bear for our 3 million users our withdrawal fees are one of the lowest globally, and we have continued to reduce these fees even after shutting down our India exchange.
We do come across unscrupulous elements once in a while who try to spread misinformation amongst our users or make false claims to lure users onto insecure platforms or to cheat them. Our incident response & support teams proactively handles such cases and helps our community. Learn more about how to stay safe.
How is Zebpay tackling the challenges surrounding the shutdown?
After our exchange operations were closed down in India, and INR balances were given back to our customers, we noticed an increase in phishing attacks and scams that were intended to lure our customers. These phishing attacks continue to operate and foment on social media, often spreading misinformation with a blatant disregard for the trust that over 3 million people have in Zebpay.
Due to the nature of misinformation in these phishing attacks, here are some facts that we felt the need to clear up:
Zebpay has never increased its withdrawal fees to coincide with the exchange shutting down in India. The transfer fee for Bitcoin on Zebpay was and continues to be dynamic, i.e the fee varies depending on the network traffic.
All INR balances were given back to the bank accounts registered to the user during signup and KYC. In case of certain exceptions caused by banking channels (failures or cancellations), users can continue to raise a support ticket with Zebpay and resolve the same. We do everything in our control to come to a favourable resolution for our users.
Which Zebpay features are active for Indians?
As the first major exchange to support Lightning, Zebpay is also the torchbearer for new technologies that have the potential to revolutionise how we trade, globally. The Lightning feature is open to Indian customers on the Zebpay app! Zebpay Crypto wallet services (send / receive) are functional in India.
Please note that Zebpay does not offer deposits and withdrawals in INR, and our exchange services (which is different from our cryptocurrency wallet services) are not operational in India.
Some tips on staying safe:
Furthermore, anyone claiming to be Zebpay or an employee of Zebpay, asking you to deposit any cryptocurrency to a wallet address as an offer or celebration, is illegitimate, and is probably a scammer.
Please feel free to raise a support ticket regarding any clarification or anything we can do to help. Our global support address is help.zebpay.com. Here, you can raise a ticket, read the FAQs, or peruse our support articles to understand our operations and objectives.