India’s Koinex Crypto Exchange Closes Down Citing Uncertainty
India was one of the most active Bitcoin (BTC) and altcoin markets, but a hawkish climate and an attempt to de-monetize the economy led to the closing of another leading exchange.
India was one of the most active Bitcoin (BTC) and altcoin markets, but a hawkish climate and an attempt to de-monetize the economy led to the closing of another leading exchange.
Koinex exchange, a market operator in India, has decided to close doors, citing uncertainty in the future. The market operator announced the closing earlier on Thursday, during one of the biggest sell-offs of digital coins for 2019.
https://twitter.com/koinexindia/status/1144103660164534273
Koinex closes after about two years of work, covering some of the biggest bull markets, but also the lengthy bear market in 2018.
“After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today. It is, without a doubt, a sad day for all digital assets and blockchain enthusiasts in India and we can’t express in words how hard it’s been for us to make this decision,”saidRahul Raj, co-founder of Koinex.
The closing of Koinex follows the end of Coindelta back in April. Additionally, a bill has been proposed in India to make illegal any handling of digital assets. India had one of the strongest digital asset communities, and the country has been open to fintech solutions, but the government has been cracking down on the alternative payment methods to avoid the growth of a grey economy.
Recently, even LocalBitcoins removed the cash option for peer-to-peer payments in India, allowing only the more easily traceable form of electronic payment.
India is also one of the biggest markets for WhatsApp, where the upcoming Libra coin by Facebook may also offer another means of non-bank payment.
While 2019 saw the bull market return with increasing activity, smaller exchanges have suffered due to low volumes and regulatory pressures. Additionally, market operators and anyone handling digital assets will have to comply with a recent Financial Action Task Force (FATF) recommendation, which may be adopted worldwide.