India-based exchange Koinex has recently announced its decision to close down. Co-founder Rahul Raj made the announcement via his Twitter account, citing the lack of banking support and regulatory uncertainty in the country.
Trading volume has significantly decreased following the proposal of a law in June to introduce a 10-year jail sentence for cryptocurrency use, according to a report by Cointelegraph.
Raj also disclosed that the exchange had faced several disruptive acts from the government, such as denials of payment services. Government scrutiny had extended to regular transactions made by the exchange, to the point that its employees were under audit by banks about the sources of their income.
Raj also cited uncertainty surrounding the future of the country’s crypto industry.
“The final decision has been taken after duly considering all the latest developments in the crypto and blockchain industry in India,” The exchange’s co-founder said. “Unfortunately we’re not too hopeful that things will change for the better in the near future.”
According to Raj, Koinex customers are required to withdraw all crypto funds from the platform by July 15th, 2019. The company explained that it will attempt to release all users’ frozen deposits to their registered bank accounts within five weeks.
Koinex is the latest India-based cryptocurrency exchange to shut down. Coindelta, Coinome and Zebpay had all closed earlier this year over regulatory pressure and policy uncertainty.
Due to the hostile regulations, Facebook has delayed its plan to apply for approval to operate its newly-introduced Libra cryptocurrency for legal distribution within India.
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