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Indian authorities closed the third cryptocurrency exchange

Neironix
June 28, 2019 12:00 AM
332 Views
Indian authorities closed the third cryptocurrency exchange

After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today. It is, without a doubt, a sad day for all digital assets and blockchain enthusiasts in India and we can’t express in words how hard it’s been for us to make this decision,

The management of the company emphasized that in the last 14 months in India it was difficult to conduct business in the field of digital money. Problems with local trading floors began in 2018, when the country's Reserve Bank imposed a ban on servicing organizations related to cryptocurrencies controlled by institutions.

On April 6, 2018, the Reserve Bank of India issued a circular instructing all regulated financial services entities to exit relationships with companies and individuals dealing in virtual currencies and block all such crypto-related transactions. While the RBI circular, resulting into a complete banking ban, has been challenged in the Supreme Court of India, the status quo since April 2018 continues till today,

Koinex opened in the summer of 2017. Within 4 months of operations, Koinex became India’s largest digital assets exchange  —  recording $265 millions in trading volume and on boarding more 40 000 new users in 24 hours at peak  of December. Koinex also became India’s fastest growing startup to see such metrics and an ultra-quick profitability.

Koinex is the third exchange that has closed in India since the beginning of 2019. In April, the network reported that local authorities have prepared a bill that implies a total ban on cryptocurrency in the country. New rules may come into force in the next two months.