It seems that two cryptocurrency exchanges in India, BTCXIndia and ETHEXIndia are having troubles. They have informed to their customers via email that they are stopping trading activities. The main reason alleged is that the government is discouraging cryptocurrencies and the business is suffering from a stressful situation.
India Cryptocurrency Regulations
At the moment of writing this article, the cryptocurrency exchange BTCXIndia says on its page not to make any INR or XRP deposits. Furthermore, it says that customers are advised to withdraw their funds before March the 4th 2018. These exchanges are operating since 2014 (BTCXIndia) and 2016 (ETHEXIndia), as informed in the email sent to their customers.
The email sent cites the Indian Finance Minister that has been speaking negatively about cryptocurrencies and linked them to illegitimate activities.
“As we heard in the budget speech, the Indian government is discouraging cryptocurrency trading. This has been clear also by government actions in the last year, and has put out business under a lot of stress and putting us in a position where we don’t feel that we can continue our business in a professional manner any longer.”
If the investors do not take their funds out from the cryptocurrency exchange they will be charged a n annual wallet maintenance fee.
But the government has a long history attacking Bitcoin and cryptocurrencies. According to India’s Minister of Finance, Bitcoin is a “Ponzi scheme.” Additionally, several banks in India have limited or suspended accounts of cryptocurrency exchanges, alleging illegitimate transactions.
“Until new rules are in place for tokens on public Blockchains, we are halting our trading (XRP/INR pair) platform and will focus 100% on our consultancy working with permissioned Blockchains,” keeps the statement sent by the exchange.
Cryptocurrency Regulations Ahead
In the past we have written at CoinStaker about India and the intention to restrict cryptocurrencies. The Central Bank of India was analyzing very carefully this possibility. The executive director, S. Ganesh Kumar, explained that cryptocurrencies, including Bitcoin and Ethereum, will not be allowed in India.
Mr Ganesh Kumar commented while talking in a conference in Mumbai, India on November the 6th:
“Our current position on Bitcoin is that we will not be using it for any payments and settlements… though the technology underlying cryptocurrencies will not end. As regards non-fiat cryptocurrencies, I think, we are not comfortable with them.”
It is important to see how the cryptocurrency market will evolve. India is an important growing economy that may play an important role in the future of cryptocurrencies worldwide. At the moment, we can only wait for the G-20 Meeting between the different Finance Ministers.
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