Update: We asked Raj, if this was temporary or if it was permanent. He told Crypto-News India, “Our current position is that we’re seeing little chances of positive regulations, and we decided not to continue operating in regulatory grey area (we’ve been consistently operational in the grey area for over a year now)”
It appears, that good news and bad news come in pairs. While there was celebration, post bitcoin’s meteoric spike to $13,000, back home the news was tempered with one of the eminent exchanges, Koinex, deciding to shut shop.
That’s right. One of the leading cryptocurrency exchanges in the country, Koinex has announced that it will be downing its shutters, by today.
In a heartfelt post, Rahul Raj, one of the founders of Koinex said, “Amidst all of this, from a basic economic feasibility point of view, it is just not prudent to continue doing this business. The amount of capital, effort and grit that’s required to conduct a complicated business like this is just increasing with no relief in sight — the infrastructure cost alone for operating the exchange platform and ensuring the safety and security of users’ funds is unbelievably high. Adding to that the costs for legal, customer support and a cluster of other functions, continuing to conduct the business is proving to be an unwise idea with no scope to make revenues to cover for them.”
‘This’ refers to the legal uncertainty, pertaining to the cryptocurrency regulations, the numerous media reports (unfounded or otherwise), possibility of a blanket ban on cryptocurrency trading, and all.
The post touched upon the harassment that was faced by Koinex from banks and how they were facing denials in payment services from payment gateways, bank account closures and blocking of transactions for trading of digital assets. This is something, even we at Crypto-News India faced during our brief association with Koinex. Kotak Mahindra closed our bank account, when we hosted the company’s banner and we were barred from receiving the payment.
The post said, “The digital assets trading services will be permanently disabled on all our platforms at 2.00 PM IST on Thursday, June 27, 2019. All open orders after this deadline will be automatically cancelled and the funds will be returned to corresponding wallets. Users are requested to plan their trading activity carefully and close their trade positions.”
This is a developing story. Please stay tuned for updates.
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