India’s largest digital assets trading company, Koinex, has decided to back down from its struggle to cope up with ambiguous crypto regulations laid out by the Government of India. In the latest post from Medium, Koinex announced the shutdown of its Indian crypto exchange office.
Crypto enthusiasts were shocked with the rumor of a crypto ban in India just earlier this month with a screenshot of the “supposed legislative proposal” but the market run was cooled off by level heads and investigative analysis.
Short run to a short-lived stardom
India’s most popular trading platform, founded in 2017, notched record profits with more than two hundred sixty-five million dollars ($265 million) of trading volume and over forty thousand users registering on a single day. Unfortunately, the success run did not last long.
In April 2018, the Reserve Bank of India (RBI) announced a widespread ban on crypto use. It prohibited all Indian banks from dealing or managing any form of a digital asset.
While the decision quenched the enthusiasm of many crypto-based businesses, there were those who decided to jointly challenge RBI’s decision at the apex court. However, the court verdicts are yet to find common ground.
The beginning of an end
In a dismal state, Koinex states that the decision was taken following indefinite delays faced at court, vague cryptocurrency regulations and an inadequate framework introduced by GOI. This, coupled with, constant interruptions in their day-to-day operations, made it extremely difficult for the organization to sustain.
In an attempt to encourage participation from Indian investors in the massive bitcoin gains that swept across the international crypto space, Koinex bogged itself down with heavy financial burdens. All this and more led to the company not being able to pay rent, employee wages or perform any non-crypto transaction.
Effective immediately, Koinex has deactivated all crypto trading services and canceled all its open orders. It has urged its users to send in withdrawal requests until Jul 15, after which, the company will officially bid adieu to the Indian crypto market.