Koinex is the latest cryptocurrency exchange to fall prey to India’s ban on virtual currencies. Months after delisting several cryptocurrencies, the exchange has shut down its trading services. The exchange has blamed uncertainty as well as disruptions for the unexpected decision.
In an official statement, Koinex says it has always wanted to provide blockchain enthusiasts a reliable way of digital trading assets. The government-instituting ban on cryptocurrencies, according to Koinex management, made it impossible to continue offering crypto trading services. The exchange has since given its customers until July 15 to withdraw all their digital assets from the exchange.
According to CEO Rahul Raj, they could no longer continue to operate in India given the immense financial burden because of stringent regulations. Immediate reports indicate that the government is planning to introduce a new bill that will ban cryptocurrencies completely and propose a jail term for anyone dealing in them.
“We have stayed away from disclosing details to the public in the larger interest of mindfully steering the industry towards positive regulations, but unfortunately we’re not too hopeful that things will change for the better in the near future,” said Mr. Raj.
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Cryptocurrency Ban in India
Koinex joins a string of other crypto exchanges that have had to close shop in recent months. In September of last year, Zebpay was forced to close down all its operations as the Reserve Bank of India passed a ban on virtual currencies. The exchange has since had to shift all its operations to Australia where cryptocurrencies are considered legal tenders.
If recent developments are anything to go by, then Unocoin could be the next crypto exchange to exit the Indian Market. Reports indicate that the exchange has laid off a significant amount of staff given the regulatory uncertainty that makes it impossible to operate a successful crypto business in the country.
The uncertainty in the Indian market is a stark contrast to developments in other mature economies. In the US, for instance, cryptocurrencies are slowly finding their way into the mainstream sector. Facebook and JPMorgan have both already launched cryptocurrencies.
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