Bitcoin wallets go looking for funding at times of uncertainty with the regulators

MUMBAI: Although the Reserve Bank of India, has not endorsed cryptocurrency as an official mode of exchange, Ahmedabad based bitcoin wallet company Zebpay one of the prominent bitcoin wallet companies in India has drawn a long term plan to expand its operations globally.

The global operations of Zebpay is based out of Singapore which till now was offering only coupons and vouchers from ecommerce sites like Amazon and eBay in exchange of bitcoins. However by early 2017, the website plans to start buying and selling of bitcoins in US dollars.

“We are in the process of closing funding to the tune of $1 million which would allow us to start buying and selling of bitcoins for our global customers from our operations centre which is based out of Singapore,” said Sandeep Goenka, co-founder at Zebpay.

Zebpay is also trying to keep its channels of discussion with the Reserve Bank of India open to popularise bitcoin as a legal exchange mode. The RBI has been having discussions with the bitcoin wallet companies but is yet to frame clear guidelines around such ventures since the industry in India is still at a very nascent stage.

Goenka said that in order to keep its transactions clean and open for inspection, Zebpay on principle does not accept cash in exchange for bitcoins and also keeps pan card details of all its users.

“We have a compliance team which looks into the fact that all the transactions happen through internet banking so that there is a proper money trail and we can keep clean from allegations of being used for terror funding,” he said.

With the total number of bitcoins in the world fixed at 21 million, value of bitcoins fluctuate on a regular level and with more of them being mined, each one’s value is bound to shoot up. This has caused a lot of high net worth individuals and young executives with a large disposable income to use them as an investment destination.