One Indian crypto exchange announced that they are about to close all Indian Rupee crypto trading. The exchange said:
We will temporarily be closing INR related trading pairs at 5 p.m. on Wednesday 5 Sep 2018. At that time, all pending orders involving INR pairs will be cancelled.
While it is not possible for us to speak on behalf of our banks, we intend to give back the money to you as soon as possible after that.
Bitcoin saw a quick price fall by just $300, but in India it fell by more than $1,000 according to price data from Zebpay.
According to the chartbitcoin hitted a low of 520,000 rupees, worth $7,200. Making it a $1,200 price drop yesterday within about one hour. Global prices, in contrast, saw little if any price movement yesterday.
That may suggest there might have been some sort of arbitrage. Yesterday bitcoin price chart in India looks quite similar to today’s global bitcoin price action. Although more pronounced ETH which saw a 18% drop.
India’s Central Bank has banned commercial banks from serving crypto entities. In the meantime exchanges in India can not handle fiat.
What fiat was on the exchanges, however, might have allowed for some sort of arbitrage or ownership movement, by perhaps selling accounts and so on, but Zebpay is now sending all that fiat back and is, in effect, closing off the Indian Rupee trading pair.