India-based digital asset exchange Coinome has announced the shut down of all trading activities on its platform from May 15.
The exchange publically announced the move with a tweet on May 9 and urged its customers to withdraw all funds stored on the trading platform.
All crypto markets on Coinome will be suspended, effective 2pm on May 15th, 2019. Customers are requested to withdraw all their crypto assets from Coinome at the earliest.
— Coinome (@CoinomeOfficial) May 9, 2019
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Coinome is backed by Billdesk, one of the largest payment processors in the subcontinent. The company is supervised by the country’s central bank and is registered under the country’s Payments and Settlements Systems Act 2007.
Though the digital asset exchange did not detail the reason behind the tough move, it can be suspected that the tough stance of the Reserve Bank of India (RBI) towards crypto companies has driven it out of business.
In an email to its customers, the struggling exchange wrote: “India is currently going through uncertainty on crypto guidelines and regulations. The government of India has not yet taken a decision on the regulatory framework for crypto exchanges or wallets. Further, the supreme court is yet to act upon the public interest litigation (PIL) on (the) regulation of crypto assets.”
The market needs proper laws
The crypto regulatory scene in India has become very complex. In the absence of any proper laws protecting the digital assets, the central bank has banned all commercial banks operating under its wing to conduct any business with crypto-related companies. However, the exchanges operating within India challenged the decision at the country’s apex court, the hearing date of which has recently been pushed to July.
In March, Finance Magnates reported that another India-based crypto exchange Coindelta also put a halt to its operations citing the difficulties with the uncertainty in regulations.