Another Indian Crypto Exchange Shuts Down Blaming Banking Ban

Regulatory uncertainty ushered in by India’s central bank appears to have brought about the demise of another cryptocurrency exchange in the nation.

In a Medium post published Thursday, the Koinex exchange says it’s been forced to shutter its services as a de facto ban on banking relationships for crypto firms – ordered by the Reserve Bank of India (RBI) in April 2018 – has meant that it is economically unfeasible to continue with normal business.

The exchange writes:

“We have consistently been facing denials in payment services from payment gateways, bank account closures and blocking of transactions for trading of digital assets. Even for non-crypto transactions like payment of salary, rent and purchase of equipment, our team members, service providers and vendors have had to answer questions from their respective banks — just because of an association with a digital assets exchange operator.“

While the RBI banking ban is being challenged in the Supreme Court, a lack of clear direction from the government has meant that the case is currently in limbo until a decision is made.

Last September, India’s then-largest crypto exchange by trading volume, Zebpay, was also forced to shut down citing the RBI restrictions.

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