India’s first Bitcoin exchange and an app-enabled Bitcoin wallet provider, Zebpay has issued a notice to its users stating that it might stop Rupee withdrawals.
The announcement comes after a circular released by the Reserve Bank of India on April prohibited banks and financial institutions from providing any services related to cryptocurrencies.
Does Bitcoin have a future in India?
The RBI issued a notice to the banks to comply with their directive by July 5th, but it sent a wave of disappointment among the exchanges and they chose to file a petition against RBI.
The Supreme Court would be hearing the same on July 20.
Price slumps after the notice:
After Zebpay’s notice, Bitcoin price in India plunged as BTC dropped to lowest 3,500,00 INR.
This notice comes as a nail in the coffin for the Indian investors who are optimistic about the future of cryptocurrencies. However, it remains to be seen if RBI overturns its rigid stance over the Bitcoins after Supreme Court’s verdict.