Rahul Raj, co-founder at Koinex blogged about shutting down all digital assets exchange services and operations at Koinex. This development was dated 27 June.
Rahul expressed in a tone of dejection about the difficulty faced while making the decision. He opined that Indian blockchain and crypto enthusiasts would be rendered rather disconsolate. Rahul recalled Koinex coming into operations almost two years ago and offered great features like open order-book, know your client (KYC) compliance while being a multi-asset exchange. Rahul acknowledged that Koinex virtually opened the world of blockchain in India.
Rahul sustained by adding that Koinex was at par with international counterparts with no obvious gaps. He then expressed the prosperous trajectory that Koinex got aligned with. In a matter of months, Koinex rose to become India’s largest and popular digital asset exchange. Rahul shared some staggering numbers including recording 265 million U.S. dollars in trading volume and onboarding more than forty thousand new users in 24 hours.
Rahul cited on the downside of encouraging developments as –
“However, this short-lived astronomical growth curve was stalled with the emergence of issues with formal banking channels on which exchange services were deeply dependent on. On April 6, 2018, the Reserve Bank of India issued a circular instructing all regulated financial services entities to exit relationships with companies and individuals dealing in virtual currencies and block all such crypto-related transactions. While the RBI circular, resulting into a complete banking ban, has been challenged in the Supreme Court of India, the status quo since April 2018 continues till today.”
Rahul added on the tough decision that was taken to shut down Koinex. He stated that the past 14 months had been very inconvenient to operate considering shutting down of bank accounts housing user’s deposits. Rahul captured a point of immense impact stating that although bearing a significant financial burden, Koinex continued to operate. Such an endeavor was in a bid to help law abiding citizens of India to participate in the peer-to-peer revolution.
In a similar report striking Indian sentiments, in April, another exchange operating in India, Coindelta shut down its operations following RBI’s check on bank accounts. Coindelta faced almost similar issues compared to Koinex and had conveyed about the logistics of running a digital exchange in unfavorable environments. Coindelta had resorted to levying minimal trading fees while incurring all the costs to themselves to ensure a good trading experience.
Rahul conveyed a sincere thanks to all the users of Koinex. He indicated that although Koinex was dedicated to serving the customers with the best of services, they ultimately had to yield to regulations. Rahul clarified that although digital assets would not be in the purview of Koinex, the firm would continue to serve Indian populace achieve financial independence.