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.