One of the top Indian Crypto Exchange firm Koinex to stop functioning and close its operation due to a lack of banking support and rising regulatory uncertainty in the country.
Rahul Raj Co-founder of Koinex said that:
“The last 14 months have been tough to operate a digital assets trading business in India, on account of the closure of bank accounts holding user deposits” via a Medium blog post on Thursday.
As per the Medium post, recently the exchange firm faced numerous denials in payment services provided by the payment gateways from various banks, they even faced transaction blockage used in trading cryptocurrency.
It has been a long time since, April last year The Reserve Bank of India (RBI), barred the banks from serving the digital currency exchange firms. Since then various of the firms have filed a petition so as to reverse the ongoing Ban, but as for now, the case is still pending with the Supreme Court of India. The hearing has been scheduled in the month of July.
To this Raj wrote:
“Multiple delays by the government agencies in clarifying the regulatory framework for Cryptocurrency despite our pending writ petition in the Supreme Court of India, coupled with regular disruption in our operations, the final decision has been taken,”
Previously this month various reports were there that showed the Indian government has proposed a bill regarding ban over the Cryptocurrency trading and suggesting a 10-year jail for the person using the cryptocurrency.
To this Raj wrote “all the above reports have created enough FUD[fear, uncertainty and doubt] in the Indian Cryptocurrency trading community and this subsequently resulted in a sharp downfall in the current trading volumes.
All this resulted in Koinex permanently disabling Cryptocurrency trading on its available platform with effects from 2:00 PM IST on 27th of June. But the digital wallets will be available to the users until 15th of July, users are required to withdraw their available funds, as their post suggested.
Koinex is just another firm getting disabled due to the Indian regulatory policy many other Indian exchange firms like Zebpay, Coindelta, Coinome have already stopped functioning in the recent months.
So we have 6 Indian exchanges operational now:
Anything I am missing? Please let us know in comments.