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.