The general environment in India for crypto has been stifling at best with several cryptocurrency exchanges, like Coindelta shutting operations due to the governmental crackdown. The distrust towards the burgeoning technology is such that a regulatory framework fintech sandbox recently announced exempted crypto-related projects altogether. Exasperated with the situation, the latest crypto exchange to suspend operations, starting 15 May, is Coinome that announced its plans via a tweet on 9 May.
Even Coinome’s connection with BillDesk, a Reserve Bank of India (RBI) governed payment service, has not been able to save it from succumbing to the heat of the unfavorable climate in the country. The crypto landscape in India has for the most part seen no growth ever since the RBI ban on banks barring them from offering their services to crypto startups.
The Reason Behind the Decision
According to a Quartz report, Coinome has even sent out explanatory emails to its users shedding some light on the current situation and the reason behind the decision. The mail apparently states:
“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.”
Adding fuel to the fire are recent media reports that hint towards the government’s inclination towards a complete crypto ban in the country. However, the truth of these reports is a matter of contention, as there has been no official confirmation.
Coinome, unlike Coindelta, has not closed its operations for good and have used the term “suspended” instead, leaving the company’s fate in limbo. They also urged customers to withdraw their savings in the tweet, following which many customers have complained about withdrawal issues.
No Respite in Sight
Meanwhile, the legal battle against the RBI ban drags on in the country with the Supreme Court issuing a four-week ultimatum to formulate crypto regulations to the concerned authorities, failing which the court will close all crypto related cases.