Harsh Crypto Regulations Force Another Indian Exchange out of Business
Indian crypto market faces another strong blow as Coinome exchange announced that it will be shutting down business from May 15, Quartz reported May 10, 2019.
Third Major Crypto Business to Fall to Unfavorable Regulations
The recent bill introduced by the Indian government that proposes a blanket ban on cryptocurrencies has had a far-reaching effect on the major crypto companies in India.
Suppressed by the previous laws along with the recent announcement of an unfavorable crypto bill, and the drop in trading volumes that followed, Coinome crypto exchange was pushed to the corner. It announced on May 9 that it will shut down its business within a week. This makes it the third major Indian crypto business to be clamped due to unclear crypto regulations.
The lack of supportive crypto regulation had already caused India huge loss in the new technological landscape. After facing difficulties due to the ban on financial entities to deal with crypto companies, India’s largest cryptocurrency exchange Zebpay moved their office to Malta in September 2018.
Half a year later, on March 30, 2019, the day of Supreme Court’s previous hearing on crypto regulations in India, Coindelta announced that it too was rolling out of business.
Expressing the difficulties Coindelta faced in operations before being forced to circle on the final decision, they stated on their website:
“The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services.”
Owner of another struggling cryptocurrency exchange told Quartz that Supreme Court’s March hearing was expected to cast a clear crypto regulation, but shattering all hopes, that too fell flat. “A lot of players are beginning to lose hope,” Quartz quoted the owner, who preferred not to be named.
The Crypto Community Can’t Keep Calm
Crypto exchange WazirX’s CEO, Nischal, has been running a Twitter campaign using the hashtag ‘IndiaWantsCrypto‘ for the past 190 days to reach out to those in power and help the crypto community’s voice be heard.
Blockchained India, an incubator for blockchain developers, also hosted a series of open town hall gatherings across four major Indian cities in March to add to the cause.
These efforts are worth mentioning, but until now, the voices only seem to be falling on deaf ears. In such a time, the statement given by Ajeet Khurana, CEO of Zebpay, during his announcement of moving Zebpay services to Australia, acts as the beam of hope. He said:
“I have talked to all of the top stakeholders in the Ministry of Finance, the central bank, the securities regulator and despite them having a certain amount misgiving around crypto I have never heard them talk of banning it.”