Indian Cryprocurrency Exchanges Close Because of Crackdown Rumors

indi

According to CNN, BTCXIndia, platform on which you can buy Bitcoin and Ripple, and ETHEXIndia, an ethereum trading exchange, closed their doors Today (Monday).

Kamesh Mupparaju, CEO and creator of both platforms told CNN that “if there is a sudden [order] to withdraw the funds, that would mean trouble for the customers.”

The Indian Finance Ministry has said in the past that it would eliminate cryptocurrencies “in financing illegitimate activities or as part of the payment system.” They even went as far as comparing all digital currencies to “Ponzi schemes”.

As of now, there are no official regulations that have been put in place by the Indian government. Both BTCXIndia and ETHEXIndia have stopped accepting deposits on January 1st and have been contacting their clients to tell them to withdraw their funds ever since.

In an e-mail to their clients, the exchanges wrote: “The Indian government is discouraging cryptocurrency trading,” adding that,  “[this has] put our business under a lot of stress and [is] putting us in a position where we don’t feel that we can continue.”

The two exchanges combined had around 35,000 customers making about $46,000 in trade volume daily.

So far, other Indian exchanges have continued to do business. According to Mr. Mupparaju, “We are a bit more cautious than other exchanges, […] the customers’ funds are lying with me. If something goes wrong, I am a very small player and I don’t have funds lying elsewhere, so I can’t take big risks.”

 

4 thoughts on “Indian Cryprocurrency Exchanges Close Because of Crackdown Rumors

Leave a Reply