Friday, December 9, 2022

Zebpay Adds Support for EOS Despite Government Clampdown

Zebpay Adds Support for EOS Despite Government Clampdown

According to its blog post, India’s leading multi-coin exchange Zebpay is officially rolling out support for EOS, an ERC20 token on its platform. EOS tokens will hit the Zebpay trading floor at 1:00 today, allowing users to immediately start trading the cryptocurrency.

Also see: Vlad Zamfir Calls Ethereum’s Fixed Supply Discussions ‘Premature’

Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates:

Despite RBI Clampdown, Crypto Exchanges Optimistic, Zebpay Defiant

The announcement stated trading fees on EOS will be 0.1%, similar to those for other digital tokens on the platform. Even though crypto exchanges are expanding their services, trading has come to a halt due to a recent government clampdown on the crypto market. The announcement came at a time when the market is frozen.

According to Coinmarketcap, the EOS token is the 7th biggest coin with a market cap of almost $6.5 billion USD. ERC denotes Ethereum Request for Comments, which is a token standard of Ethereum. ERC20 defines a set of rules that a token needs to comply with in order to be called an ERC20 token.

The move to add EOS is a way to assure crypto traders that operations are as normal. Recently, the Reserve Bank of India (RBI) barred all entities it regulated, including banks, from providing service to crypto businesses. Crypto experts saw the RBI’s actions as an attempt to slow the growing crypto market.

In response, Zebpay CEO Ajeet Khurana tweeted:

Crypto Clampdown Affects Deposits and Withdrawals from Indian Exchanges

The RBI’s move has directly and adversely affected crypto exchanges even more harshly than it has upset local traders. As banks in the country have started terminating their partnerships with crypto exchanges, local traders have faced problem making both withdrawals and deposits.

However, the RBI has provided a settlement period of three months for the banks to exit their relationships with crypto exchanges. The problem for crypto exchanges is that their customers (crypto traders) are moving to international exchange platforms that do not fall under the Indian government’s jurisdiction.

The Zebpay website welcomes its customers with a cautionary warning:

“RBI has recently issued communication about the discontinuation of services by RBI regulated entities (banks/payment gateways) for purchase and sale of Bitcoin and other virtual currencies. We remain committed to keeping customer funds and assets secure and are exploring various options. However, a sudden disruption in banking services could affect our ability to service deposits and withdrawals, until banking services are restored. Please keep this risk factor in mind while making your investment decisions.”

Although Indian crypto exchanges are striving to facilitate local traders, government interference is hindering the growth of the crypto market in the country. Rumors have also surfaced that crypto exchanges collectively are planning to file PIL (Public Interest Litigation) to force the RBI to backpedal on its decisions, or at least ease it. Crypto exchanges in the country are doing all they can to ensure their customers do no look for international alternatives.

Will the addition of EOS on Zebpay give local traders confidence in the face of the current situation? Let us know your views in the comments section below.

Images via Pxhere 

Bitsonline Email Newsletter