Cryptocurrencies are having a bad time in India. The proposal for outright bans, criminal charges are leading the local crypto exchanges to cease their operations overnight. Yet another Indian crypto exchange shuts down amidst ensuing regulatory chaos. The firm Koinex has decided to call it quits in the crypto domain.
The announcement regarding the closure of Koinex comes from the official blog post of the founder. He cites that stringent regulations by RBI, the uncertainty of passing favorable regulations by the government have forced them to stop Koinex. Rahul, the founder mentions that they have been facing denial of payment service from various payment gateways. The business also faced blocking of transactions from various banks on grounds of them being a digital currency exchange.
The worst of everything is Koinex employees getting clarification notice from banks for non-crypto transactions like salary credits. The Koinex founder says that running an exchange is a tough business. The current situation in India is not economically viable to run the firm.
All the trading services of Koinex will come to a complete halt on 27th June 2019 at 2:00 PM IST. Traders are requested to close their trades in time. Users should empty their crypto wallets by 15th of July 2019. As bank accounts with the user funds are frozen by bank authorities, Koinex has made arrangements to disburse funds on its own.
Previously, in May 2019 another crypto exchange Coinome also suspended its activities and shut down. India has been working on a bill to criminalize the use of crypto in India. That means dealing with any kind of crypto will lead to stringent action from the police. So, this pretty much speaks for itself that India literally has no scope for cryptocurrencies in the near future.