Indian Crypto Exchange Koinex Shuts Services, Blames Regulations

Koinex, one of the largest crypto exchanges in India, on Thursday announced that it is terminating its digital asset trading services and other crypto-related operations.
According to the official press release, the exchange was forced to take the harsh decision amid the in the country.

“After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today,” Rajul Raj, co-founder and CEO of the exchange noted.
The exchange detailed that the country’s central bank’s decision had affected the regular operation of the exchange and put a dent on its finances.
“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,” Koinex noted. “We took on 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.”
Slow court proceedings
Though India-based crypto players formed a consortium to challenge the decision of the Reserve Bank of India at the apex court of the country, it is yet to reach at any verdict as the court proceedings are getting delayed.
“Multiple delays by the government agencies in clarifying the regulatory framework for cryptocurrencies despite our pending writ petition in the Supreme Court of India, coupled with regular disruption in our operations, the final decision has been taken after duly considering all the latest developments in the crypto and blockchain industry in India,” the exchange added.
Koinex was also facing troubles with its payment services and gateways, along with non-crypto related transactions like payment of salaries, rent, and purchase of equipment.
The exchange will terminate all crypto tradings on 27th June at 2 pm (IST) and has asked its customers to put up a fund withdrawal request by June 15.
Koinex is not the first Indian crypto exchange to shut its door as, earlier this year, two other exchanges operating in the country – and – stopped offering crypto trading services. However, compared to those exchanges, Koinex was handling a much larger trading volume – the company reported $4,400,000 worth crypto trades in May.

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