Koinex Ceases Operations Following Pressure from India Government
One of the most successful Indian digital asset exchanges has announced they are closing down their business following mounting pressure from India’s government to ban cryptocurrency.
Koinex, one of the most successful Indian digital asset exchanges, has announced they are closing down their business. The move comes as the pressure from India’s government to ban cryptocurrency increases.
Founded in August 2017, by that December Koinex had become the largest platform for Bitcoin and other cryptos to be traded in India. Within one twenty-four-hour period they recorded a trading volume equivalent to US$265million and onboarded over 40,000 new users.
Problems arose for Koinex, and all other cryptocurrency related companies, in April 2018 when the central bank of India, the Reserve Bank of India, instructed all banks and financial institutions to cease dealing with crypto related companies.
Reports of frozen balances, and even difficulties in staff receiving salaries from companies like Koinex have been made public. Co-founder Rahul Raj wrote in a blog post, “The last 14 months have been tough to operative a digital assets trading business in India… We have consistently been facing denials in payment services from payment gateways, bank account closures, and blocking of transactions like payment of salary [and] rent”.
Even now, when ceasing trading, the owners of Koinex are reimbursing clients out of their own pockets, since most of their users still have funds tied up in legalities. The platform will be permanently disabled from 14.00 27th June 2019 IST.
As we recently reported, the issues of cryptocurrencies in India are ongoing. Prime Minister Narendra Modi opposes anything that isn’t fiat because he fears the population aren’t educated enough and want to maintain control of money to reduce corruption.There is currently a bill in front of parliament ready to impose ten year jail terms for anyone trading virtual currrencies.