Indian Exchange Koinex Shutdowns After Months Of Uncertainty from RBI Crypto Ban
Although India had always been a hotbed for the development of crypto infrastructure, the country’s draconian and immature crypto regulation has stifled the scope of innovation there. Most in the crypto ecosystem would be already familiar with the regulatory news coming out of the country with a draft of a bill going as far as punishing people dealing in cryptos with as much as 10 years of jail time.
We've to regretfully inform all our users that we've decided to permanently disable all digital assets trading services on all Koinex platforms from 2 PM IST today (27th June 2019). Please read the announcement blog from our co-founders here: https://t.co/AVaHppwgEJ
— Koinex (@koinexindia) June 27, 2019
The company’s co-founder Rahul Raj released a heartfelt blog post in which he addressed the situation that led the company to make this shocking decision. Rahul first talked about the highlights of the short run of the exchange stating:
“Within 4 months of operations, Koinex became India’s largest and favorite digital assets exchange — recording $265M in trading volume and onboarding 40K+ new users in 24 hours at the peak in the month of December.”
Although the company, which had then become the fastest growing startup in India were hit with a series of bad news. In April of 2018, the RBI asked all regulated financial services entities to exit relationships with companies and individuals dealing in virtual currencies and block all such crypto-related transactions. Even though this judgment by RBI has been challenged in the Supreme Court, no verdict has come out of it.
This has been the major factor in the company’s decision to stop its operation. Raj continues by saying:
“The last 14 months have been tough to operate a digital assets trading business in India, on account of the closure of bank accounts holding user deposits. We took on the 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.”
Basically, the burden of legal costs, customer support, and other added costs were too much for the young company to bear.
Most users are sad about their favorite Indian exchange leaving the scene. After Coinome, Zebpay and now Koinex, all heads are turned towards WazirX, the last standing major Indian crypto exchange. Their CEO Nischal Shetty is a major advocate and activist of crypto in India. Even though he expressed his grief for their only competitors to be shutting down, he welcomed their customers with open arms assuring that WazirX having highest liquidity for deposit and withdrawal of INR in India.
Unfortunate to hear that Koinex is shutting down. Team of good people.
We @WazirXIndia welcome all the users of Koinex. WazirX has the highest liquidity for deposit and withdrawal of INR in India.
Jai Hind 🇮🇳 #IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) June 27, 2019