Indian crypto exchange Coindelta has abruptly announced the termination of its trading services on March 30.
In an official post, Shubham Yadav, founder of Coindelta, cited the strict regulations imposed on the crypto industry by the country’s central bank has forced the exchange to shut its services.
“It has been really difficult for us to operate Coindelta exchange for the last 6 months,” Yadav noted on a Medium post. “The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services. There has not been any significant progress in the Supreme Court case which makes it difficult to predict when we will see the regulation.”
— Coindelta (@coindelta_) March 30, 2019
Launched in 2017, the exchange attained a significant number of followers with its low trading fees compared to its competitions. However, that very particular strategy has driven the exchange out of business as in the announcement the exchange stated that its operational cost has skyrocketed.
What Lies Ahead for a British Fintech Industry Outside the EUGo to article >>
“Running the exchange is very expensive in such unfavorable environment. We have been operating at a minimal trade fee, bearing all the costs ourselves ensuring that your trading experience remains unaffected in the current unregulated environment,” the exchange stated. “Economically, it’s no longer viable to continue with the exchange.”
Unfavorable Operating Conditions
The Indian authorities had always been hostile towards the crypto industry. After a series of warnings from government bodies, the Reserve Bank of India, the country’s central bank, in April 2018, barred all banks from any business dealings with the crypto-related businesses.
This created a huge dent in the booming market and ultimately drove Zebpay, one of the biggest operating exchanges, out of the country.
The sudden decision of Coindelta also created much controversy as the exchange is now charging a significantly high fee for withdrawal of funds from the exchange. This also created an uproar in the Indian crypto community.
Coindelta is very unprofessional and unethical in increasing Withdrawal fees for their users.
— Naimish Sanghvi (@ThatNaimish) March 31, 2019
However, to take advantage of the situation, another local digital asset exchange WazirX jumped into the picture and is offering withdrawal fee refunds to all Coindelta users moving their entire funds to the exchange.