In line with a recent official ‘announcement‘ published, renowned ‘Indian‘ crypto-currency exchange namely ‘Coinome’ has declared that it’ll be closing its operations since from 15th May, due to regulatory difficulties.
As reported earlier also, exchanges within the country have been facing serious problems on banking services since the central bank [RBI], ‘enforced‘ a ban on dealings with crypto businesses last year.
This year have seen even additional shake-up of community sentiment, with native media alleging in late April that numerous government divisions are ‘considering‘ an absolute ban on cryptos altogether in all of its forms – however the truthfulness of the rumors still stay ‘contested‘ given other previous reports.
Coinome, that is backed by well-known Indian on-line payment gateway named ‘Billdesk’, has not revealed that whether the suspension is in effect a complete shuttering of services, tweeting solely that:
“All cryptocurrency markets on Coinome would be suspended, effective from 2pm on 15th May. Thereby, customers are requested to withdraw all their assets from Coinome at the earliest.”
Coinome’ difficulties return despite its association with Billdesk, that notably is supervised by the central bank of India, as it is also a participant beneath the country’s Payments and Settlements Systems Act 2007, and has investments from two of country’s leading public sector banks – State Bank of India and Bank of Baroda.
A recent report from native news outlet ‘Quartz’ cited an alleged Coinome email that has reportedly been sent to customers, apparently providing additional details of the recent development:
“India‘ is presently undergoing a phase of uncertainty on crypto guidelines and laws. The Indian govt. has not however not yet taken a final decision on the restrictive framework for cryptocurrency exchanges or wallets. Further, the supreme court is yet to act upon the general public interest litigation’s on the regulation of cryptocurrency assets.”
For now, the status and future of crypto’ within India remains extremely complicated. Since the RBI’s controversial prohibition came into effect from last July, both the public and industry-led petitions have appealed to the courts on the grounds that this decision is unconstitutional. Earlier in the month of October last year, major exchange Zebpay was ‘forced‘ to close its operations for the Indian Uses due to the RBI’s policy implemented.
As this long legal battle continues, this February, the Supreme Court ‘granted‘ four weeks to authorities to come up with cryptocurrency regulation policies before the Court – together with the parties who demand to reverse the RBI’s crypto circular. This spring, RBI ‘excluded‘ crypto assets from its restrictive sandbox.