India’s biggest cryptocurrency exchange Koinex has just announced that it will terminate its exchange services. As was the case with Zebpay and Coindelta, Koinex has cited the increasing operational difficulty on account of the RBI cryptocurrency ban which blocked access to bank accounts, as reason for the shutdown. The exchange trading services will be permanently disabled on Koinex at 2.00 PM IST on June 27, 2019.
The exchange will cancel all open orders after this deadline and the funds will be returned to the corresponding user wallets. A snapshot of the wallet balances at this time will be taken for record, and INR balances will be disbursed to user accounts within the next five weeks after levying a convenience fee between Rs 10-2000, depending on the INR wallet balance. Users will need to withdraw their assets from the platform before 9.00 PM IST on July 15, 2019.
We took on immense financial burden to continue trading of digital assets and allow law-abiding Indians to participate in the decentralized revolution that has swept across the globe. 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.Rahul Raj, CEO of Koinex in his blog post
On a rather ominous note, the exchange stated that it is not too hopeful about the state of cryptocurrency regulations. According to the blog post, the recent reports from Bloomberg Quint on the ‘Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019’ had led to sharp declines in trading volumes, adding to the troubles at the exchange.
Koinex had also been facing denials in payment services from payment gateways and bank accounts, even for non-trading activities such as payment of salaries, purchase of equipment and other tasks because of association with cryptocurrencies. It is sad to see India’s biggest exchange falling prey to the government’s regressive stance on cryptocurrencies.
(Image Credit: Koinex Blog)