Indian Exchange Koinex Calls it Quits Amid Unclear Crypto Regulations
In a Medium post published on June 27, 2019, Indian cryptocurrency trading platform Koinex announced that it is shutting down its exchange services in the country due to the challenging regulatory environment.
Koinex Bids Adieu to India
Launched in August 2017, Koinex is one of the largest Indian cryptocurrency exchange platforms by reported volume.
At the peak of the crypto bull run towards the end of 2017, the exchange recorded more than $265 million in trading volume and registered more than 40,000 new users within a single day in December. The exchange quickly established itself as the premier digital assets exchange of India and witnessed a reported “ultra-quick profitability” in a short period.
However, Koinex’s fairytale was only short-lived, as the Reserve Bank of India’s (RBI) April 2018 ban that prohibited Indian banks from dealing with crypto businesses had a severe impact on the country’s budding crypto ecosystem.
Speaking on the overall sentiment in India, Shalini, a notable commentator of crypto developments in the country added:
“While the world celebrates [the return of Bitcoin], India’s crypto startups are dying. Presently, the RBI has no regulations on crypto, they have only put a ban on banks dealing with crypto and nothing else has come out officially. We are all waiting for regulations so we get a clear picture of the future of Indian crypto investors and businesses.”
Further, the Supreme Court of India’s continual delay of the cryptocurrency case has also dampened the enthusiasm of the country’s crypto curious.
In the blog post, Koinex mentions that after duly considering the complications mentioned above, along with the recent unconfirmed reports of an impending blanket ban on cryptocurrency trading in India, it has decided to shutter all exchanges services in the country.
The post reads in part:
“Multiple delays by the government agencies in clarifying the regulatory framework for cryptocurrencies despite our pending writ petition in the Supreme Court of India, coupled with regular disruption in our operations, the final decision has been taken after duly considering all the latest developments in the crypto and blockchain industry in India.“
The exchange added that due to its thinning profits, it has had trouble paying salaries to employees and keeping up with operational costs of the platform.
Important Information for Koinex Traders
Koinex will permanently disable all digital assets trading services at 09:30 GMT, June 27, 2019. Open orders after this deadline will automatically be canceled and the funds will be credited back to respective wallets.
Further, the exchange’s digital assets wallets will continue to function until 15:30 GMT, July 15, 2019, after which, user’s funds will be forfeited. Hence, users are advised to withdraw all their funds before the said deadline. Nischal Shetty, the founder and CEO of Indian crypto exchange WazirX, told BTCManager that, “we at WazirX welcome all the Koinex users to move their funds to WazirX. We have the highest liquidity for INR deposits and withdrawals in India.”
As previously reported by BTCManager, major cryptocurrency exchange Zebpay had shuttered its business in India and moved to Malta due to the European country’s pro-crypto regulations. Shetty also added:
“Until we hear a formal statement from [the Indian] government, we shouldn’t make any assumptions. I’m hopeful that [India’s] prime minister will ensure India participates in crypto.”