The Koinex crypto exchange recently announced that it would be shutting down operations, ironically just a few months short of hitting its two-year anniversary.
The Indian government’s crackdown on crypto entities has taken a toll on another major trading firm. In a blog post, Rahul Raj, the firm’s head, vented his thoughts on the dark state that the Indian crypto sector found itself in.
Just recently, India’s financial regulatory body, the Reserve Bank of India (RBI), passed an official ordinance forbidding banks from associating with digital currency businesses.
While most attributed the firm’s shut down to the pessimistic attitudes surrounding digital currency in the nation, Raj himself disclosed that the government’s plan to enforce a massive jail sentence on crypto traders was what had put the nail in the coffin.
The stringent anti-crypto stance adopted by the Indian government has forced many other major businesses in the sector off the grid. Zebpay, another leading digital currency exchange, had also closed down recently amid the intensifying clamp down on the industry.
Analysts note that the most pertinent effect of these developments will be the country’s employment.
With currency exchanges being driven out of the nation, vast quantities of crypto-related jobs are being moved abroad. A few months after initiation, Koinex had witnessed paramount trading activity, with some projecting the collective transaction valued at nearly two hundred sixty-five million dollars ($265 million).
This showcases the incredible market potential that had just been thrown down the drain, with prospects of growth and expansion that could have generated thousands of jobs also flushed away.
Apart from squashing jobs, the Indian government’s crypto crusade is also costing the economy on other avenues.
Investors in the blockchain and digital currency space have been pulling out and, as a result, the country’s market has been suffering, unable to reap the benefits of the crypto price surge that had recently swept through the market.
Along with this, skilled labour in the blockchain and crypto front have also been driven out of the country in search of jobs elsewhere, leading to a sustained brain drain that has impacted the nation’s tech sector.