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Indiaās proposed laws to introduce a 10-year jail term for dealing in cryptocurrency have been listed as a factor in Koinexās closure.
Indian crypto exchange Koinex has ceased operations effective immediately, co-founder Rahul Raj confirmed in aĀ blog post on June 27.
Raj said multiple delays by government agencies in clarifying crypto regulation have played a factor in the decision to close.
This monthās proposal toĀ introduce a 10-year jail sentence for Indian citizens who use cryptocurrencies had also contributed to a āsharp decline in trading volumes.ā
According to Raj, Koinex had experienced āregular disruption,ā including denials when attempting to use payment services. He alleged this disruption extended to non-crypto transactions as well ā with exchange employees asked questions by banks whenever they received their salary or attempted to pay their rent.
Warning that it was no longer economically feasible to serve customers, Raj added:
āThe final decision has been taken after duly considering all the latest developments in the crypto andĀ blockchain industry in Indiaā¦ Unfortunately weāre not too hopeful that things will change for the better in the near future.ā
Raj said the exchange plans to refund frozen deposits to bank accounts over the next five weeks, and urged users to empty theirĀ crypto wallets by July 15.
In May, another Indian cryptocurrency exchange, Coinome, alsoĀ announced that it was closing its doors because of regulatory difficulties.
Last week, it wasĀ reported thatĀ Facebook has not applied for approval to operateĀ libra, its newly announced cryptocurrency, in India.
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