Regulatory pressure forces one more exchange to shut down in India

Posted 27 June, 2019

The leading cryptocurrency trading platform in India – Koinex – has announced business shutdown citing persisting regulatory uncertainties in the country and problems with banking support.

"After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today," said the company spokesperson in the press release..

As Koinex management noted, cryptocurrency businesses have been facing difficulties for the past 14 months, since local payment providers and banks refuse to offer services to this industry and block all transactions connected with cryptocurrencies.

For reference, the Reserve Bank of India banned local financial organizations from providing any services to the companies that deal with cryptocurrencies in mid-2018. Although some platforms attempted to put this decision in issue, the case remains under the court determination. The next hearing is expected in July. 

Once the platform will stop all activities, all orders will be cancelled, while the funds will be returned to users, as it was noted in the press release. 

"Users are requested to plan their trading activity carefully and close their trade positions," the company warned.

It should be mentioned, application of cryptocurrencies in India is subject to up to 10 years in prison, which alarmed people and entailed trading volume plunge.

This is not the first case when tight regulatory environment forces exchanges shut down operations. For example, Coinnome, Coindelta and Zebpay have also closed businesses lately.

Previous story

27 June, 2019 16:45

← Beijing expresses some concerns about Libra cryptocurrency

Facebook's plan to launch Libra’s digital currency has sparked a debate in China about whether Beijing should welcome a new cryptocurrency, be concerned or just ignore it. However, Chinese leaders have concerns that Libra may introduce uncertainty in Beijing’s plans.

Beijing expresses some concerns about Libra cryptocurrency

Next story

27 June, 2019 14:01

Traders go to law against Mt Gox founder →

Former traders of dead failed cryptocurrency exchange Mt. Gox has reportedly filed a petition against the founder of the platform Jed McCaleb charging fraud activities and deliberate misrepresentation of the facts and data concealing. They said that they had lost some of the funds due to those activities in 2014 when the platform was hacked.

Traders go to law against Mt Gox founder
Write a comment
 
Prove you’re not a bot + 5 = 15