Zebpay, the largest cryptocurrency exchange in India shuts down. This move is in follow up ofRBI’s restriction on Banks. RBI has restricted banks from providing financial services to cryptoexchanges.

Zebpay the crypto exchange in its blog post stated, "At 4 p.m. today (28 September 2018), wewill cancel all unexecuted crypto-to-crypto orders and credit your coins/tokens back to yourZebpay wallet. No new orders will be accepted until further notice.”

The Indian Finance Ministry declared that there is no protection offered for trading in any virtualcurrencies.

The company stated in its blog, "Lakhs of Indians took their first step into the world of Bitcoinusing the Zebpay app. Your trust has been the pillar of our strength. Despite regulatory andbanking problems along our journey, we continued to look for solutions as we did not want Indiato miss the bus of digital assets that power the public blockchain."

However, the relieving information for those who have been using the crypto exchange is thatthe Zebpay wallet will continue to work even if the exchange shuts down. "You are free todeposit and withdraw coins/tokens into your wallet" it stated.

The company further added, "However, the recent past has been complicated. The curb on bankaccounts have crippled our, and our customer's, ability to transact business meaningfully. At thispoint, we are unable to find a reasonable way to conduct the cryptocurrency exchange business"

Post the April-5 circular; the RBI disabled the deposits and withdrawal of INR on the mobileapp.

The Finance Ministry in the past year stated "Virtual currencies are not backed by governmentfiat. These are also not legal tender. Hence, VCs are not currencies. These are also beingdescribed as 'Coins' There is, however, no physical attribute to these coins. Therefore, VC isneither currencies nor coins."

The RBI's circular was issued after the ministry learned that many companies are dealing withseveral types of digital currencies, which according to the RBI does not have any intrinsic value.This ultimately leaves the investors at risk. Therefore, the RBI initiated the move to preventregulated banking bodies from withdrawing their support of any kind to such companies andexchanges.

A couple of cryptocurrency exchanges like WazirX and Koinex Loop are coming up with a peer-to-peer model that will make virtual currency trade possible without making use of the normalbanking channels. The P2P service from these exchanges will be based on escrow. A recentcontent “Koinex Upgrade 3.0.0: INR revived!

"Combining the principles of decentralization, trust, security, data privacy, and ease-of-use,Loop will complete the full circle for digital assets trading in India." This move is expected to be a cornerstone that will help with the acceptance of the blockchain technology in India.