Crypto News Flash #192: India Flash Crash! Indian Crypto Exchange 'Zebpay' Issued A Circular For Potential Fiat Withdrawal Stoppage
Following the RBI's notification to all the commercial banks to stop providing services to any crypto related business including crypto exchanges, one of largest Indian crypto exchange issued a circular to all its users informing them of potential Fiat withdrawals stoppage.
They announced that they may be withdrawing support for INR withdrawal on Friday and this caused a Flash crash in the price of Bitcoin in Indian market. The price of Bitcoin fell from $6700 to $5700 within few minutes after Zebpay issued that circular to their users. A lot of panic selling happened. People tried to sell BTC in bulk and the price crashed instantly.
Currently, the price of BTC has retraced back to $6100 (405000 INR) but still a lot of Sell orders can be seen on the order books of Zebpay exchange.
The copy of that circular is given below:
Although, Zebpay claimed to challenge RBI's decision in Supreme Court of India and the final decision has yet to come. The next hearing will be held on 16th July 2018 and until then nothing can be said with surety regarding the Fiat banking ban.
People are expecting a Ban reversal by RBI but as a precaution, Zebpay issued that circular to inform their customers in advance.
Let's see what will be the future of cryptocurrencies in India.
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