Indian crypto exchange Koinex halts crypto services for regulation issues

Indian Koinex, one of the largest crypto exchanges in the country, has announced its crypto services termination. The exchange announced terminating other crypto operations as well.

The article was updated on 15 November, 2019 by Amicus.

June 27, 2019 | AtoZ Markets –  The termination of the Koinex crypto services scheduled for 27th June at 2 pm (IST). The company called on its customers to put up a fund withdrawal request by June 15.

About Indian Koinex in a brief 

It is not the first Indian crypto exchange for terminating its crypto services. Earlier this year, two other exchanges operating in the country. They are Coindelta and Coinome. It stopped offering crypto trading services. Compared to the exchanges mentioned above, Koinex was handling a much larger trading volume. The company reported $4,400,000 worth of crypto trades in May.

However, the Reserve Bank of India’s decision to ban banks from doing business with crypto-related companies had a massive impact on the company’s crypto services. The company outlined that in the last 14 months, it has tough to operate the business in India. That was due to the closure of bank accounts holding user deposits. 

Koinex terminates crypto services due to regulatory uncertainty 

According to the official press release, the Indian Koinex exchange was forced to halt crypto service amid the ongoing regulatory uncertainties in the country. While speaking about their activity termination, Rajul Raj, co-founder, and CEO of Koinex noted: “After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today.”

The crypto exchange had also issues with payment services and gateways. That was along with non-crypto transactions like payment of salaries, rent, and purchase of equipment. We took on the immense financial hardship to continue trading of digital assets. And we allow law-abiding Indians to participate in the decentralized revolution. That has swept across the globe,” Koinex officials outlined.

Speaking of crypto regulatory issues in India, it is worth to mention, India’s new finance secretary Subhash Chandra Garg made a recent announcement. The politician confirmed that the report detailing the country’s crypto regulation is ready and soon will be submitted to the finance minister for approval. Back then, local media confirmed. The description containing the recommended crypto regulations. That submitted to the finance minister. That is after more than a year of analysis and deliberation.

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