(BlockBar) According to Rahul Rj, Koinex co-founder and CEO, It was already difficult for them since the central bank’s earlier ban of financial institutions support on cryptocurrency companies, and it made them even harder because of India’s unclear cryptocurrency regulatory policy.
Shares in Koinex, India’s largest crypto exchange, fell sharply after the announcement, with BTC trading at $4,795.95 and the remaining 26 digital currencies trading against the Indian rupee falling by an average of about 50 per cent.
The Indian government is discussing the Prohibition of Crypto and Officially Regulated Digital Currency 2019 Act. The bill stipulates that “holding, buying, and selling digital currency such as bitcoin is a criminal offence, and the penalty is very severe, and can be sentenced to 1 to 10 years in prison.”
When bitcoin crossed the 10,000 USD mark, the premium for bitcoins traded on Zebpay, India’s largest exchange, was more than $400 for BTC/USDT and BTC/INR. Perhaps it is India’s policy restrictions that have sharply reduced the number of ways to buy bitcoin. Traders faced with scarcity on channels and demand rising when price of BTC soaring. Zhao changpeng, CEO of BInance coin, tweeted that the country’s decision to ban cryptocurrencies will only drive more people to cryptoassets.
Koinex’s trading volume grew rapidly in the bull market of 2017, topping $265 million. However, after the announcement of the central bank, more and more domestic users choose to use overseas platforms. In addition, Koinex’s bank accounts have been shut down, storing large amounts of user money, and the exchange had to close because of the pressure on its operating costs. It is worth noting that Koinex is not the only exchange that has opted out due to unclear policy. Coindelta, Coinome and Zebpay all exited India market.
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