India-Based Exchange Koinex Shutters Amid Tough Regulations

Asia Blockchain Review
July 18, 2019

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. 

Regulatory Headwinds Impact Non-Crypto Transactions 

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.”

Koinex Customers Urged to Withdraw Tokens by July 15

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. 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain: Fine-tuning the Music Industry
Music might be in need of another tech disruption in the form of blockchain.

July 17, 2019

Graph Blockchain Secures Contract with South Korean Transport Ministry
The pilot project is for storing traffic data on a blockchain network as part of the Smart City nati...

July 13, 2019

Hong Kong, a Great Place for Blockchain Startups
It is quite evident that Hong Kong is quite rapidly developing to be a blockchain hub in the region ...

July 12, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us