- Koinex – India’s most advanced digital assets exchange set to shut down
- This move comes amidst the country’s tight reins on digital exchanges and scrutiny surrounding the banks that work with them
- Users are requested to withdraw all digital assets from Koinex at the earliest
Koinex, one of India’s largest cryptocurrency exchanges, is shutting down with immediate effect. The digital assets trading services will be permanently disabled on all platforms at 2.00 PM IST on June 27, 2019.
This news was announced via a blog post from the exchange that stated:
‘’After months of uncertainty and disruption, we have regretfully decided to shut down all digital assets exchange services and operations today. It is, without a doubt, a sad day for all digital assets and blockchain enthusiasts in India and we can’t express in words how hard it’s been for us to make this decision.’’
Why is Koinex Shutting Down?
The decision to close down was reached due to numerous delays by the government regulatory agencies in clarifying the governing framework for cryptocurrencies, coupled with regular disruption in the Koinex digital exchange operations. The exchange also reports having suffered constant denials in payment services from payment gateways, bank account closures, and cancellation of transactions for the trading of digital assets.
Koinex has carefully considered all the developments in the crypto and blockchain industry in India and concluded that the immense financial burden for the trading of digital assets in the decentralized platform is not feasible from an economic standpoint.
What Happens Next?
Once the set deadline lapses, all open orders will be automatically canceled and the funds returned to corresponding wallets. A snapshot of all wallet balances will then be taken for record keeping, and the process of disbursing INR balances will begin instantly.
Since the bank accounts with user funds are still frozen, Koinex has voluntarily decided to source for funds from their own resources and reimburse clients so as to relieve their predicament about the capital held up in these frozen accounts. This is Koinex’s way of saying “thank you” and bidding goodbye.
Users are requested to plan their trading endeavors prudently and close their trade positions before the 14:00 IST deadline. The digital assets wallets will remain functional, and users are advised to withdraw all funds from the platform before 09:00 PM IST on July 15, 2019. Failure to withdraw by this deadline may result in forfeiture of funds, in the event that Koinex is unable to keep the wallet function active past the timeline mentioned above.
